The 10-second takeaway
For the quarter ended June 29 (Q4), Coach met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share grew. GAAP earnings per share dropped.
Gross margins were steady, operating margins shrank, net margins dropped.
Coach logged revenue of $1.22 billion. The 30 analysts polled by S&P Capital IQ expected to see net sales of $1.24 billion on the same basis. GAAP reported sales were 5.8% higher than the prior-year quarter's $1.16 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 $0.89. The 29 earnings estimates compiled by S&P Capital IQ anticipated $0.89 per share. Non-GAAP EPS of $0.89 for Q4 were 3.5% higher than the prior-year quarter's $0.86 per share. GAAP EPS of $0.78 for Q4 were 9.3% lower than the prior-year quarter's $0.86 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 72.6%, much about the same as the prior-year quarter. Operating margin was 26.0%, 440 basis points worse than the prior-year quarter. Net margin was 18.1%, 370 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 $0.85.
Next year's average estimate for revenue is $5.50 billion. The average EPS estimate is $4.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,936 members out of 3,121 rating the stock outperform, and 185 members rating it underperform. Among 950 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 924 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 $63.02.
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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.