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Coach Made New Appointment in Management

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Price movement

Coach (COH) has a market cap of $10.2 billion. It rose 2.1% to close at $36.24 per share on January 4, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 5.2%, 0.93%, and 3.5%, respectively, on the same day.

COH is trading 0.19% below its 20-day moving average, 0.33% below its 50-day moving average, and 4.5% below its 200-day moving average.

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Related ETF and peers

The ALPS Sector Dividend Dogs ETF (SDOG) invests 2.0% of its holdings in Coach. The YTD price movement of SDOG was 2.2% on January 4, 2017.

The market caps of Coach’s competitors are as follows:

  • Estée Lauder (EL): $29.1 billion
  • Ralph Lauren (RL): $7.5 billion
  • Michael Kors Holdings (KORS): $7.1 billion

Latest news on Coach

Kevin G. Wills has been appointed Coach’s chief financial officer, effective no later than March 2017.

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Coach’s performance in fiscal 1Q17

Coach (COH) reported fiscal 1Q17 net sales of $1.04 billion, a rise of 0.71% over $1.03 billion in fiscal 1Q16. A strategic decision in the North American wholesale channel impacted sales. The company’s gross profit margin and operating margin rose 130 basis points and 230 basis points, respectively, between fiscal 1Q16 and fiscal 1Q17. Gross margin includes the impact of currency headwinds.

The company’s net income and EPS (earnings per share) rose to $117.4 million and $0.42, respectively, in fiscal 1Q17, compared to $96.4 million and $0.35, respectively, in fiscal 1Q16. It reported adjusted EPS of $0.45 in fiscal 1Q17, a rise of 9.8% over fiscal 1Q16.

Coach’s (COH) cash, cash equivalents, and short-term investments rose 16.2%, and its inventories rose 19.1% between fiscal 4Q16 and fiscal 1Q17.

Projections

Coach has made the following projections for fiscal 2017:

  • revenue growth in low- to mid-single digits, including a benefit from foreign currency of ~1.0%–1.5%
  • operating margin of 18.5%–19.0%
  • interest expense of ~$25.0 million
  • tax rate of ~28.0%
  • double-digit net income and EPS growth

Next, let’s take a look at Coca-Cola (KO).

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