Coach Stock Feels the Heat

Coach (NYSE: COH  ) stock is taking it on the chin today, falling nearly 10% at the low as investors react to the company's fourth-quarter earnings report.

Profit for the quarter was down 12%, and the company missed analysts' expectations on sales but met them on earnings. Coach is facing some headwinds in the North American market, but continues to see success internationally; sales in China soared 35%. However, there are worries regarding the brain drain at the top.

Motley Fool analyst Jason Moser explains that as a Coach shareholder himself, he's not concerned. Coach's longtime CEO, Lew Frankfort, will be staying on as chairman. He'll be replaced by Victor Luis, head of international operations, the very segment where Coach has seen great success.

The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of the last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.


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