After the Crash, Is It Game Over for Coach?

Coach (NYSE: COH  ) came out this morning and revealed that it had a "challenging" holiday quarter. Despite undeniable weakness in today's numbers, the knee-jerk reaction from the market feels a bit excessive. Coach's headaches seem much more the product of a weak retail environment than evidence of any sort of company deficiency.

Yet there is no denying that it's a tough time to be a luxury retailer. Coach may not deserve this sell-off, but that may not make it a buy today. If you're looking for something a bit safer in today's environment, you might want to check out the stock that The Motley Fool's chief investment officer has selected as his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (5) | Recommend This Article (3)

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  • Report this Comment On January 23, 2013, at 11:15 AM, ctrivermouth wrote:

    Thanks for your perspective Austin! Have to agree with your long term view...

  • Report this Comment On January 23, 2013, at 11:27 AM, SALTARELLO wrote:

    you guys from Motley Fool missed on this one, COACH a core stock was your recomendation since some months ago, come on!

  • Report this Comment On January 23, 2013, at 11:59 AM, DrGoldin wrote:

    I do kind of agree with this opinion, but there's one thing I would have wanted to hear more about: Coach's admission that they're facing more competition.

  • Report this Comment On January 23, 2013, at 12:01 PM, EquityBull wrote:

    3% miss on EPS. 18% hit on the shares. Seems proportional and rational to me

  • Report this Comment On January 23, 2013, at 1:07 PM, JohnCLeven wrote:

    Increased my COH position by 66% today. I think this brand is stronger than people give it credit for, and that COH is a solid LT buy. Only time will tell.

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