The 10-second takeaway
For the quarter ended March 30 (Q3), Coach met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share expanded.
Gross margins grew, operating margins dropped, net margins shrank.
Coach chalked up revenue of $1.19 billion. The 27 analysts polled by S&P Capital IQ expected revenue of $1.18 billion on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $1.11 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 $0.84. The 29 earnings estimates compiled by S&P Capital IQ forecast $0.80 per share. GAAP EPS of $0.84 for Q3 were 9.1% higher than the prior-year quarter's $0.77 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 74.1%, 30 basis points better than the prior-year quarter. Operating margin was 29.3%, 110 basis points worse than the prior-year quarter. Net margin was 20.1%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.89.
Next year's average estimate for revenue is $5.09 billion. The average EPS estimate is $3.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,938 members out of 3,119 rating the stock outperform, and 181 members rating it underperform. Among 866 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 839 give Coach a green thumbs-up, and 27 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 $60.30.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.