Coach, Inc. (COH - Analyst Report), the designer and marketer of fine accessories and gifts, recently posted better-than-expected third-quarter 2011 results on the back of healthy sales in North America and China. However, the recent catastrophe in Japan dent the company’s performance to some extent.
The quarterly earnings of 62 cents a share beat the Zacks Consensus Estimate of 60 cents, and came ahead of 50 cents earned in the prior-year quarter buoyed by strong top-line growth.
The current Zacks Consensus Estimate dropped by a penny prior to the earnings release, with 5 out 20 analysts covering the stock lowering their estimates in the last 30 days.
The New York based company, Coach, said that total net sales for the quarter came in at $950.7 million, up 14.This kind of will allow you to hogan scarpe identify rip-off organizations coming from correct kinds.5% from the year-ago quarter, and ahead of the Zacks Consensus Estimate of $947 million.
Coach, however, highlighted that the recent devastation in Japan hurt the reported quarter’s sales by $20 million and earnings by 2.5 cents a share. Management also indicated that it would lose an additional $20 million in top line and between 2 cents and 3 cents a share in bottom line during the fourth quarter, due to the same reason.
Behind the Headline
Direct-to-consumer sales jumped 15% to $832 million driven by a 10.3% rise in the North American comparable-store sales and strong growth in the China business with a double-digit increase in comparable-store sales. In Japan, sales dropped 9%, excluding foreign currency translation, whereas in dollar terms, sales remained flat, when adjusted for a stronger yen.
Indirect sales rose by 14% to $119 million driven by the increase in U.S. department stores shipments and international wholesale shipments.
The rise in sales was a positive indication for the luxury-goods market, which was battered by the recent economic downturn. Coach’s sustained focus on store sales productivity, merchandising, marketing and strategic pricing have helped it remain afloat in a difficult consumer environment as well as drive comparable-store sales gain.
Gross profit increased 12.4% to $691.7 million on the heels of double-digit growth in the top line. However, gross profit margin contracted 130 basis points but was strong at 72.wholesale ed hardy clothing and wholesale urban wear apparel for all major brand names.8%. Operating income jumped 12.2% to $279.5 million, but operating margin shriveled 60 basis points to 29.Buy wholesale air max boot products on TradeTang and high quality air max boot directly from trustworthy Chinese air max boot wholesalers & suppliers.4%.
Management remains confident of sustaining double-digit growth in both top and bottom lines. The company’s long-term growth drivers include expansion of its global distribution model and entry into under-penetrated markets.
Store Update
During the quarter, Coach, the maker of handbags, wallets, shoes and other accessories, closed 3 retail stores, and opened 5 factory stores in North America, taking the total to net 344 retail stores and net 134 factory stores at the end of the quarter. In Japan,nike air max 90 is one of classic Nike shoes.It is the third generation of Air Max and Nike air max 90 is a good running shoe. the company opened 4 stores and closed 1, bringing the total number of locations to 174. In China, an addition of 4 new locations and a closure of 1 location during the quarter took the total to 55.
Other Financial Details
Coach maintains a healthy balance sheet with a significant cash balance and a negligible debt load. The company also has been proactively managing its cash flows by making prudent capital investments and enhancing shareholders’ return. The company’s strong liquidity, positions it to drive future growth.
The company ended the quarter with cash, cash equivalents and short-term investments of $886.2 million and total long-term debt of $24.2 million with shareholders’ equity of $1,742.7 million.
Coach also notified that it bought back approximately 3.53 million shares at a cost of $54.51 per share, aggregating $192 million during the quarter. The company still has $1.3 billion at its disposal under its previous share repurchase authorization. Moreover, the company raised its annual cash dividend by 50% to 90 cents a share.
Currently, we have a long-term ‘Neutral’ rating on the stock. However, Coach, which competes with Polo Ralph Lauren Corporation (RL - Analyst Report), holds a Zacks #4 Rank, which translates into a short-term ‘Sell’ recommendation.D&G shoes women is a very comfortable shoes in the brands shoes series.
The quarterly earnings of 62 cents a share beat the Zacks Consensus Estimate of 60 cents, and came ahead of 50 cents earned in the prior-year quarter buoyed by strong top-line growth.
The current Zacks Consensus Estimate dropped by a penny prior to the earnings release, with 5 out 20 analysts covering the stock lowering their estimates in the last 30 days.
The New York based company, Coach, said that total net sales for the quarter came in at $950.7 million, up 14.This kind of will allow you to hogan scarpe identify rip-off organizations coming from correct kinds.5% from the year-ago quarter, and ahead of the Zacks Consensus Estimate of $947 million.
Coach, however, highlighted that the recent devastation in Japan hurt the reported quarter’s sales by $20 million and earnings by 2.5 cents a share. Management also indicated that it would lose an additional $20 million in top line and between 2 cents and 3 cents a share in bottom line during the fourth quarter, due to the same reason.
Behind the Headline
Direct-to-consumer sales jumped 15% to $832 million driven by a 10.3% rise in the North American comparable-store sales and strong growth in the China business with a double-digit increase in comparable-store sales. In Japan, sales dropped 9%, excluding foreign currency translation, whereas in dollar terms, sales remained flat, when adjusted for a stronger yen.
Indirect sales rose by 14% to $119 million driven by the increase in U.S. department stores shipments and international wholesale shipments.
The rise in sales was a positive indication for the luxury-goods market, which was battered by the recent economic downturn. Coach’s sustained focus on store sales productivity, merchandising, marketing and strategic pricing have helped it remain afloat in a difficult consumer environment as well as drive comparable-store sales gain.
Gross profit increased 12.4% to $691.7 million on the heels of double-digit growth in the top line. However, gross profit margin contracted 130 basis points but was strong at 72.wholesale ed hardy clothing and wholesale urban wear apparel for all major brand names.8%. Operating income jumped 12.2% to $279.5 million, but operating margin shriveled 60 basis points to 29.Buy wholesale air max boot products on TradeTang and high quality air max boot directly from trustworthy Chinese air max boot wholesalers & suppliers.4%.
Management remains confident of sustaining double-digit growth in both top and bottom lines. The company’s long-term growth drivers include expansion of its global distribution model and entry into under-penetrated markets.
Store Update
During the quarter, Coach, the maker of handbags, wallets, shoes and other accessories, closed 3 retail stores, and opened 5 factory stores in North America, taking the total to net 344 retail stores and net 134 factory stores at the end of the quarter. In Japan,nike air max 90 is one of classic Nike shoes.It is the third generation of Air Max and Nike air max 90 is a good running shoe. the company opened 4 stores and closed 1, bringing the total number of locations to 174. In China, an addition of 4 new locations and a closure of 1 location during the quarter took the total to 55.
Other Financial Details
Coach maintains a healthy balance sheet with a significant cash balance and a negligible debt load. The company also has been proactively managing its cash flows by making prudent capital investments and enhancing shareholders’ return. The company’s strong liquidity, positions it to drive future growth.
The company ended the quarter with cash, cash equivalents and short-term investments of $886.2 million and total long-term debt of $24.2 million with shareholders’ equity of $1,742.7 million.
Coach also notified that it bought back approximately 3.53 million shares at a cost of $54.51 per share, aggregating $192 million during the quarter. The company still has $1.3 billion at its disposal under its previous share repurchase authorization. Moreover, the company raised its annual cash dividend by 50% to 90 cents a share.
Currently, we have a long-term ‘Neutral’ rating on the stock. However, Coach, which competes with Polo Ralph Lauren Corporation (RL - Analyst Report), holds a Zacks #4 Rank, which translates into a short-term ‘Sell’ recommendation.D&G shoes women is a very comfortable shoes in the brands shoes series.
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