I have personally been dumped enough to know often the "let's just be friends" talk individuals hear it, and Citigroup just directed one to Coach (COH) following the fancy brand's earnings yesterday.
See, Citigroup's Oliver Chen and team demonstrate why they really like Coach, the companies really do:
We do believe Stuart Vever's product scheduled for Oct 2014 encouragingly has better totally focus, can address pent-up demand for integral silhouettes previously unrepresented, and will angle Coach with a more advanced fashion task. Furthermore, we do have conviction in which the Coach brand will be a successful everyday living brand over time given a high involving brand awareness combined with good moment in footwear (mix 8%, $380mm) and men's (mix 15%, $700mm) and global resonation (Int'l +14% GAAP in 3Q or <20% C/C).
You know what's coming approaching. Here's where the "but" comes in, in which all the things that make Coach so fun prove to be just not enough to stay with each other:
We're downgrading to Neutral totally from Buy because of lack of catalysts suitable for near-term upward revisions in comps vs . expectations, stock overhang on the topic of investor concerns given margin concerns on a continuation of negative comps, intra-transformation store expansion risk, addiction to better trend-right fashion, & powerful global footprint (Int'l 33% including mix) not yet offsetting NA assurance.
To make matters worse, once again Which includes a Kors (KORS) and Kate Spade (KATE) are outperforming as speculators bet that Coach's pain is generally their gain. Coach has dumped 2% to $44. 82, as well as designer iPad mini case Michael Kors has gained one 6% to $9170 $91. 85 and Kate Spade is blocked 0. 4% at $34. 80.
Michael Kors iPad mini case
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