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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