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What happened

Shares of luxury brand Coach Inc (NYSE:TPR) fell 11.4% in August, according to data provided by S&P Global Market Intelligence, after the company reported fiscal fourth quarter earnings. But it was the sale of the company's headquarters that really caught investors' eyes.

So what

Quarterly sales rose 15% to $1.15 billion and net income jumped from $12 million a year ago to $82 million, or $0.29 per share. The acquisition of Stuart Weitzman has helped the company grow, but it was Coach brand that put up great numbers last quarter. North American sales jumped 9%, and international sales jumped 15%, or 13% on a constant currency basis. As it is the foundation of the company, it's positive to see the brand performing well. 

The headquarters sale happened early in the month when Coach sold its Hudson Yards building stake to Allianz Real Estate for $707 million. That's a large sum of money, but it's less than the $750 million it cost the company to buy its stake in the property five years ago and build out the space. 

Now what

While the cash from the headquarter sale and increased sales last quarter were positive, investors are taking a more tepid approach to the future. Management said fiscal 2017 sales will grow by low to mid single digits as management tries to lower discounts and macro factors hold back growth. Broadly, the luxury market has given fairly weak guidance for the next year, and that has investors pulling back on expectations, which is hurting stocks.

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