The 10-second takeaway
For the quarter ended Dec. 29 (Q2), Coach missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Gross margins were steady, operating margins increased, net margins shrank.
Coach booked revenue of $1.50 billion. The 28 analysts polled by S&P Capital IQ foresaw a top line of $1.60 billion on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $1.45 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.23. The 29 earnings estimates compiled by S&P Capital IQ predicted $1.28 per share. GAAP EPS of $1.23 for Q2 were 4.2% higher than the prior-year quarter's $1.18 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.2%, about the same as the prior-year quarter. Operating margin was 35.0%, 40 basis points better than the prior-year quarter. Net margin was 23.5%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $5.31 billion. The average EPS estimate is $3.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,600 members out of 2,772 rating the stock outperform, and 172 members rating it underperform. Among 840 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 814 give Coach a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coach is outperform, with an average price target of $67.82.
Selling to fickle consumers is a tough business for Coach or anyone else in the space. But some companies are better equipped to face the future than others. In a new report, we'll give you the rundown on three companies that are setting themselves up to dominate retail. Click here for instant access to this free report.
- Add Coach to My Watchlist.