Coach: Management’s and Wall Street’s Outlook


Dec. 4 2020, Updated 10:53 a.m. ET

Confident about achieving fiscal 2017 guidance

After a healthy first quarter, Coach’s (COH) management is expecting strong results for fiscal 2017. The company reiterated its fiscal 2017 guidance of a low-to-mid-single digit top-line increase and an 18.5% to 19% expansion of its operating margin.

“We achieved growth across key financials, including sales, gross profit and operating income as well as double-digit earnings growth. Overall, our results give us confidence that the cumulative impact of our actions will drive top line and bottom line growth per our guidance for the fiscal year,” said Victor Luis, Coach’s CEO.

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Wall Street’s view on Coach

Wall Street has predicted a 2.2% YoY (year-over-year) increase in Coach’s fiscal 2017 net sales to $4.6 billion. EPS (earnings per share) are forecast to rise 8.6% in fiscal 2017 and 11.4% in fiscal 2018, compared with an average 17% decline in EPS reported by the company between fiscal 2014 and fiscal 2016.

Investors looking for exposure to Coach could consider the iShares US Consumer Goods ETF (IYK). Coach has a weight of ~0.47% in IYK.

Ratings and recommendations

Coach is covered by 38 Wall Street analysts. Of these, 58% analysts have made a “buy” recommendation, 37% recommended to “hold, ” and 5% gave a “sell” rating on the stock. In comparison, 4% of analysts have made a “sell” recommendation on Michael Kors (KORS), and there were no “sell” recommendations for Kate Spade (KATE).

Coach has received a rating of 2.3 from Wall Street, which is better than Michael Kors’s rating of 2.8 but worse than Kate Spade’s 2. These ratings are on a scale of 1 (strong buy) to 5 (sell). Read the next section for an overview of the company’s stock market performance, current valuation, and target price.


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