Список проголосовавших за комментарий " Coach Earnings Preview (35.78 +0.20)<p>Coach (COH) is set to report Q2 results tomorrow before the open with a conference call to follow at 8:30 AM ET. Co reported last quarter's results at 6:45 AM ET. Current <strong>Q2 Capital IQ consensus stands at EPS of $0.74</strong> (vs. $0.68 last year) on <strong>revs up 2% to $1.32 bln</strong>.</p><ul><li>Last quarter, COH reported in-line EPS, missed on revs, and reaffirmed its FY 17 guidance.<br/> <ul><li>The co <strong>continues to expects revs to grow low-to-mid single digits, ex-fx</strong></li><li>Maintained operating margin forecast of 18.5-19%</li><li><strong>Continued to project double-digit growth in EPS</strong></li><li>Expects Coach brand directly operated square footage to grow lsd globally</li><li>Internationally, co expects msd increase in sq footage led by growth in Europe and msd increase in mainland China</li><li>Outlook assumes positive low single-digit comp for the brand in North America for the year and in each quarter</li></ul></li><li><strong>Consensus Estimates of FY 17 EPS of $2.13 (+8%) on revs of $4.6 bln (+2%).</strong></li><li>Currently, the XRT Retail ETF has fallen ~12% following the Trump rally. Retail stocks have sold off on concerns of online shopping hurting foot traffic during the sectors' crucial holiday period.<br/> <ul><li>On January 4, Macy's (M) preannounced November/December comps and announced restructuring.<ul><li>On the call, Macy's noted ongoing weakness in handbags and watches. </li><li>In its Q4 call, COH announced strategic actions to streamline its distribution in the North American department store channel by taking down its <strong>door count in North American department store by about 25% over 2017</strong>.</li></ul></li></ul></li></ul><p>Other Notables from Q1</p><ul><li>Stated the co is looking to make strategic acquisitions to help growth (nothing imminently planned)… could explain why the co is constantly being mentioned in M&A chatter w/ Kate Spade (KATE)</li><li>Expects dividends to grow in-line w/ earnings</li><li>Total North American Coach brand sales decreased 3% reflecting its deliberate department store pullback, while direct sales were flat<br/> <ul><li>Bricks and mortar comps ~+4%, driven by ticket and conversion, while traffic was down modestly</li></ul></li><li>Aggregate comp was ~+2% with e-commerce, notably lower eOS flash sales, impacting results</li><li>International sales +3% on a constant currency basis<br/> <ul><li>Greater China sales +5% on constant currency basis in dollars, driven by double-digit growth and positive comps on the Mainland offset by continued weakness in Hong Kong and Macau</li><li>Europe business sales grew at a double-digit pace, driven by new distribution and positive double-digit comps, excluding Paris</li></ul></li><li>Gross margin +120 bp Y/Y 68.9% for Q1</li><li>Operating margin +100 bps Y/Y 17%</li><li>Inventory levels were $547, -5% Y/Y</li></ul><p>News During Quarter</p><ul><li>On January 23, Bloomberg reported that Coach and/or Michael Kors (KORS) might make a bid for Kate Spade (KATE)<br/> <ul><li>On December 2, shares traded higher following report KATE is mulling a sale after coming under pressure from an activity investor</li><li>On November 14, M&A speculation was circulated involving the co and Kate Spade (KATE) after reports that KATE was being urged to sell itself</li></ul></li><li>On December 4, 2016, an FT article reported that Burberry (BURBY) had rejected takeover offers from Coach.</li><li>On January 4, the co appointed Kevin G. Willis as CFO. Wills joined Coach from AlixPartners LLP, a global business advisory firm, where he has served as Managing Director and CFO since March 2014.</li></ul><p>Stock Action During Quarter</p><ul><li>The stock initially gapped up ~3% to open at 37 after reporting Q1, but it was not able to hold these gains as the stock sold off to the 35 level over the course of the next 3 trading sessions.</li><li>The stock did trend in conjunction w/ the broader market as it tested resistance at 39 twice during the late Nov/early December.</li><li>On November 15, the stock was down ~4% to close at 36.36 on heavy volume after a NPD report noting that retail traffic continues to suffer b/c of online shopping.</li><li>The stock found sound support at the 34 level and it has been trading in a 34/37 range for the last month as investors await earnings.</li><li>Short interest as % of float is the lowest its been all year (currently under 3%).</li></ul><p>Analyst Actions</p><ul><li>On January 25, CLSA downgraded to Outperform from Buy</li><li>On January 25, Atlantic Equities downgraded to Neutral from Overweight</li><li>On January 3, Jefferies removed from Franchise Pick List</li></ul><p><em>Related Stocks:</em> KATE, KORS, M, JWN</p>"