Last Week’s Consumer Space: Which Stocks Were the Outliers?
At the end of the fourth week of April 2016, the S&P Consumer Staples slightly outperformed the S&P 500 and the S&P Consumer Discretionary as a whole. Let’s see which stocks stood out.
PVH Corp Has Performed Well in 2017
While PVH Corp has done better than most peers in the stock market, the dividend yield offered by its stock is among the lowest in the industry.
Coach Is Set to Buy Kate Spade for $2.4 Billion
Coach (COH), America’s leading luxury handbag and accessories maker, is buying Kate Spade (KATE) for a total transaction value of $2.4 billion.
Coach: Management’s and Wall Street’s Outlook
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 […]
Pre-Earnings Report: What We Can Expect from Coach in Fiscal 2Q16
Luxury handbag and accessory maker Coach (COH) is scheduled to declare earnings for the second quarter of fiscal 2016 on January 26.
Wells Fargo Has Upgraded Kate Spade to ‘Outperform’
Kate Spade (KATE) has a market cap of $2.5 billion. It rose 0.82% to close at $18.53 per share on September 13, 2016.
Why Did Coach Fall 6.0% on May 11?
Coach (COH) has a market cap of $10.6 billion. It fell by 6.0% to close at $38.18 per share on May 11, 2016.
Coach’s Stuart Weitzman Purchase: Why It’s Bad For KORS
Although Coach currently has a licensing deal with Jimlar for footwear, the Stuart Weitzman acquisition is likely to accomplish several objectives.
Innerwear and Activewear Drive Hanesbrands in Fiscal 1Q16
Hanesbrands (HBI) reported a 1% increase in net sales to $1.2 billion for fiscal 1Q16, which ended on April 2, 2016.
What Are Fossil Group’s Projections for 2016?
Fossil Group reported 4Q15 net sales of $992.5 million, a fall of 6.8% compared to net sales of $1,064.8 million in fiscal 4Q14.
Coach Returns A Mixed Bag To Shareholders
Shareholders used to benefit from Coach’s strong results through both stocks and dividend payouts. But in the past few years, returns have been eroded.
Understanding Coach’s Marketing Strategies
To support its direct marketing initiatives, Coach has a database of 24 million households in North America and 10 million in Asia.
How Worried Should We Be about China?
From the fastest-growing emerging market to casting a shadow over global growth, the Chinese economic story has indeed come a long way.
Fossil Group Stock Has Been Pressured Due to Weak Fundamentals
Fossil Group’s stock opened 28% higher than its closing price on February 16, 2016, as it exceeded expectations. If we look at its post-rally price return over the last year, the stock has returned -47.3%.
Inside Ralph Lauren’s Key Strengths, Potential Upsides, and Key Risks
Ralph Lauren’s merchandise is available through ~13,000 wholesale distribution channels, 501 retail stores, 589 shops-within-shops, and ten websites.
Why Coach Stock Just Plunged 15%
Coach’s (COH) stock price crashed after it reported its fiscal 4Q17 results on August 15, falling 15% on guidance that fell short of Wall Street expectations.
How Did Coach Perform in 4Q16?
Coach (COH) fell by 6.4% and closed at $39.33 per share during the second week of August 2016. Coach reported fiscal 4Q16 net sales of $1.2 billion.
Coach Raises Guidance on Upbeat Results from Stuart Weitzman
Stuart Weitzman’s results were one of the brightest spots in Coach’s (COH) fiscal 2Q16 earnings release.
Crédit Agricole Upgrades Estée Lauder to a ‘Buy’
Estée Lauder (EL) has a market cap of $34.0 billion. It fell by 0.28% to close at $91.29 per share on June 13, 2016.
PVH Expects Heritage Brands to Show Improvement in 2H16
PVH’s Heritage Brands segment, which includes brands such as Van Heusen, ARROW, Izod, Speedo, Warner’s, and Olga, accounted for 18% of its revenue in 2Q16.
A Look at Michael Kors’ Earnings Expectations and Valuations
As we discussed, Michael Kors (KORS) is slated to report its first-quarter results on August 8. Management has guided for $0.60 to $0.64 in earnings per share.
How Deeply Did Fossil Group Dig in during 4Q15 and 2015?
Fossil Group (FOSL) has a market cap of $2.1 billion. FOSL rose by 28.6% to close at $44.30 per share on February 17, 2016.
Strong Calvin Klein Performance Boosted PVH’s Fiscal 4Q15 Results
Total revenue for Phillips-Van Heusen’s fiscal 4Q15 stood at $2.1 billion, registering a rise of 2.1% compared to fiscal 4Q14.
How Has Coach Performed in 1Q17?
Price movement Coach (COH) has a market cap of $10.3 billion. It rose 2.2% to close at $36.68 per share on November 1, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 2.9%, 0.38%, and 15.0%, respectively, on the same day. COH is trading 1.9% above its 20-day moving average, 0.01% below […]
Opportunities and Challenges for Coach
Coach expects to realize $160 million in annual savings due to its restructuring initiatives from fiscal 2016 onward. It also expects to maintain its annual dividend of $1.35 per share.
Your Quick Overview of Kate Spade’s 2Q16 Results and Stock Market Performance
Kate Spade (KATE) reported weaker-than-expected 2Q16 results on August 3, 2016, recording EPS of $0.11, as compared to the Wall Street estimate of $0.14.
How Calvin Klein Navigated through Tough Macro Conditions
The company derived 46% of its operating income from the Calvin Klein business in fiscal 2015 compared to 37% in fiscal 2014.
Will Brand Building and Innovation Add Leverage to Fossil’s Valuation?
On August 2, Fossil was trading at a PE multiple of 12.9x. Fossil’s valuation multiple has fallen by 9% since the announcement of its 1Q16 results.
Why Michael Kors Had Designs on Jimmy Choo
Why Michael Kors acquired Jimmy Choo Michael Kors (KORS) is a leading luxury handbag and accessories maker in the United States. The company has recorded TTM (trailing-12-month) sales of $4.5 billion. Close competitor Coach (COH) has TTM sales of $4.5 billion. Both companies belong to the affordable luxury space, which has been facing falling sales and contracting margins […]
Michael Kors Acquires Jimmy Choo for $1.2 Billion
On July 25, Michael Kors (KORS) announced that it has entered into a definitive agreement to acquire Jimmy Choo (CHOO) for $1.2 billion. Let’s look at what Michael Kors could gain from the acquisition.
Michael Kors Beats 1Q18 Expectations, Raises Guidance
For fiscal 1Q18, Kors’s EPS came in at $0.90, or $0.28 higher than the estimate. Its revenue fell 3.6% YoY to $952 million but still beat the consensus estimate.
Consumer Post-Earnings Coverage for November 6–10, 2017
Nordstrom (JWN) announced its fiscal 3Q17 results on November 9, 2017, after the market closed. Revenue rose 2.5% to $3.6 billion YoY (year-over-year), which was 1.4% higher than the estimate.
Michael Kors’s Top Line and EPS Rose in 4Q16
Michael Kors’s (KORS) cash and cash equivalents fell by 28.3%, and its inventories rose by 5.2% in fiscal 2016.
Coach’s Pricing Strategies Benefit Its Margins
Coach’s gross margin expanded to 71.6% in 3Q15 from 71.1% in 3Q14. Coach reduced the frequency of its in-store and online promotions, which should boost its margins.
1Q18: Will Michael Kors Post another Weak Quarter?
Michael Kors Holdings Limited (KORS) is slated to report its 1Q18) earnings results on Tuesday, August 8. Here’s what you need to know.
KeyBanc Capital Markets Upgrades Fossil to ‘Overweight’
Fossil Group (FOSL) has a market cap of $1.6 billion. It rose 8.4% to close at $35.70 per share on November 16, 2016.
Coach Is This Year’s Showstopper among Apparel Stocks
Coach (COH), one of America’s leading handbag designers and sellers, has risen 35% year-to-date. Coach recently announced the acquisition of rival Kate Spade (KATE) for $2.4 billion.
Under Armour’s Bonds Downgraded to Junk Status by S&P Global Ratings
S&P Global Ratings lowered the credit rating of Under Armour (UAA) stock to junk status after the company reported weak 4Q16 results and a gloomy sales outlook. The rating on UAA’s bonds dropped from BBB- to BB+.
The Risks And Threats Inherent In Coach’s Business Model
Coach risks becoming the victim of an ongoing west coast port dispute that is delaying the delivery of goods manufactured abroad.
Why US Luxury Firms Have Underperformed European Peers in 2015
Coach stock is down -16.9% year-to-date to $31.20 on July 31, 2015. Coach’s total returns have come in at -15.5%.
Bank of America/Merrill Lynch Downgrades Kate Spade to ‘Neutral’
Kate Spade (KATE) reported fiscal 3Q16 net sales of $316.5 million—a rise of 14.1% compared to net sales of $277.3 million in fiscal 3Q15.
Key Dates for Consumer Stocks: September 18–22, 2017
On September 12, Independent Research cut the target price for Altria Group (MO) to $68 from $70 with a “hold” rating.
An overview of PVH’s business by geographies
We’ll look at PVH’s operations by geographies. It markets its products in over 100 countries through wholesale partners. It has over 4,700 retail locations.
Inside Coach’s International Business, Stuart Weitzman’s Fiscal 4Q17 Performance
Coach’s (COH) international business accounted for 39% of its 4Q17 top line. Sales fell 1.7% YoY (year-over-year) to $442 million.
Coach: Bagging The Affordable Luxury Business
Coach’s main product assortment includes luxury accessories, ready-to-wear apparel, watches and jewelry, and other items.
Coach Announces Its Sale of 10 Hudson Yards for $707 Million
Coach (COH) has a market cap of $12.1 billion. It rose by 0.81% to close at $43.46 per share on August 1, 2016.
Revenue Drivers: What’s Putting Pressure on Coach’s Sales?
In fiscal 1Q16, which ended September 26, 2015, Coach (COH) reported a 1% decline in sales to ~$1.0 billion. However, sales rose 3% in constant-currency terms.
Utilities Shine on August 12: Are They a Good Investment?
The SPDR S&P 500 ETF (SPY) is one of the most popular and active ETFs in the US. It tracks the S&P 500 Index. SPY returned 0.12% on August 12, 2015.
How Did Movado Group Perform in 4Q16 and 2016?
Movado Group reported fiscal 4Q16 net sales of $143.3 million—a rise of 7.0% compared to net sales of $133.9 million in fiscal 4Q15.
Inside Coach’s Key Sales Drivers in North America in Fiscal 3Q17
The Coach brand’s North America sales, which accounted for 48% of the company’s top line, fell 5% YoY to $474 million.
PVH Corp. Outshines Peers in the Stock Market in 2016
On May 19, 2016, PVH Corp.’s stock price increased by ~18% YTD compared to the 1.8% YTD decline of the S&P 500 Apparel and Accessories Index.
Who Were the Outliers in the Consumer Space on January 25?
On January 25, 2017, the S&P 500 slightly outperformed the S&P Consumer Staples and the S&P Consumer Discretionary as a whole.
Michael Kors: Stock Soars as Investors Find Value
Michael Kors stock rose on February 2. The comp numbers improved. Investors saw the value that the international business can add to the company.
Can Coach Design Its Way to Positive Same-Store Sales Growth?
According to Coach, its revamped retail stores in North America were experiencing positive comps. Further, same-store sales in Europe grew at a double-digit pace.
Why Blue Ridge Capital exits position in Coach
Coach shares fell in June after the company said it will close 70 out of its 351 North American full-price stores by the end of the first half of 2015.
Transformation on Track: Will 2016 Bring a Coach Renaissance?
Affordable luxury pioneer Coach (COH) reported fiscal 2Q16 results on Tuesday, January 26, before the market opened.
Can Coach Revive North America Same-Store Sales in Fiscal 2016?
Coach’s (COH) performance in North America remained pressured in the quarter, with sales declining 7% in reported terms to $731 million.
Coach’s Overseas Sales: What Do They Mean for Luxury Brands?
Sales trends for luxury brands may continue to grow in Europe due to monetary expansion and the weak euro.
Strong International Markets, D2C Channel Drive VFC’s 3Q17 Top Line
VF Corporation (VFC) posted total sales of $3.5 billion during 3Q17.
Why 82% of Wall Street Recommends Holding Ralph Lauren
The New York–based Ralph (RL) is covered by 22 Wall Street analysts. The company is rated a 3.0 with 82% “hold,” 9% “buy,” and 9% “sell” recommendations.
Key Consumer Sector Insights for August 14–18, 2017
The consumer discretionary and retail sectors’ rough performances continued last week. The consumer discretionary sector suffered after Foot Locker (FL) and Coach (COH) stock took hard falls.
Inside Coach’s Fiscal 4Q17 Top-Line Performance
For fiscal 4Q17, Coach (COH) reported total revenues of $1.13 billion, which is 1.8% lower than its revenues in fiscal 4Q16.
Coach’s 4Q17 Earnings Overview: Earnings, Revenue, and Stock Reaction
Coach reported adjusted diluted earnings of $0.50 per share, beating the Wall Street average profit estimate by $0.01.
What Wall Street Thinks of PVH Corp Now
PVH’s YTD gains have outperformed Hanesbrands’ (HBI) 11%, VF Corporation’s (VFC) 15.5%, Michael Kors’s (KORS) 4%, and Ralph Lauren’s (RL) -7.2% gains.
How Will PVH Corp’s Earnings Shape up in 2Q17?
In 1Q17, PVH reported a 10% YoY (year-over-year) increase in its EPS (earnings per share), driven mainly by a business beat.
Despite Currency Headwinds, PVH Delivers Better Growth than Peers
PVH Corporation’s (PVH) top line is predicted to grow 4.9% YoY (year-over-year) in 2Q17.
Earnings Beat Supports Ralph Lauren’s Plunging Stock Price
Ralph Lauren’s (RL) stock price soared 13% after the company reported better-than-anticipated top and bottom lines on Tuesday, August 8.
What Drove Ralph Lauren’s Top Line Down in Fiscal 1Q18?
Ralph Lauren (RL) reported total revenues of $1.35 billion in 1Q18, down 13% as compared to the same period last year.
KORS versus COH: Comparing Wall Street Valuations
Unimpressive financial performance has taken a toll on Michael Kors’ (KORS) stock market performance. Its shares have tumbled more than 15% to date.
After a Tough 2017, Michael Kors Could Face a Difficult 2018
Fiscal 2017 was a tough year for Michael Kors (KORS). The company posted a year-over-year (or YoY) sales decline in all four quarters.
VF Corporation Beats Top-Line Expectations after 7 Weak Quarters
In 2Q17, VF Corporation (VFC) reported sales of $2.4 billion. Sales from continuing operations rose 2.0% on a reported basis.
Coach Receives 78% ‘Buy’ Ratings from Wall Street Analysts
Of the analysts that cover Coach (COH), 78% recommend a “buy” on the stock, 25% recommend holding it, and 3% suggest selling it.
Coach Is Trading at the Upper End of Its Valuations
Coach’s one-year forward earnings multiple surged to 20.7x versus a three-year average of 18.3x.
Coach’s Comeback Story and Strategy Change
Coach pulled out of 250 department stores in the US during its last reported quarter, reducing the department store count by ~25% in 2017.
Michael Kors Stock Slides after Its Fiscal 4Q17 Results
Michael Kors (KORS) has a strong cash flow position. The company ended fiscal 4Q17 with cash and cash equivalents of $228 million and net debt of -$95 million.
KORS Issues Disappointing Guidance after Weak Fiscal 4Q17 Results
For fiscal 1Q18, Michael Kors’ (KORS) management is looking for EPS of $0.60–$0.64 on total sales in the range of $910 million–$930 million.
Michael Kors Challenged in Retail and Wholesale Sales in Fiscal 2017
Michael Kors (KORS) reported an 11.2% year-over-year decline in its fiscal 4Q17 sales to $1.2 billion, beating Wall Street by ~$10 million. For fiscal 2017, KORS’ total sales fell 4.6% to ~$4.5 billion.
KORS Beats on Earnings and Revenues, Lowers Guidance for Fiscal 1Q18
Michael Kors (KORS) reported fiscal 4Q17 EPS of $0.73, $0.03 higher than analyst estimates. KORS’ revenues fell 11.7% year-over-year to ~$1.1 billion, beating the consensus by $10.0 million.
Gap Stock Offers Solid Dividend Yields
Gap (GPS) has paid dividends and repurchased its shares regularly, supported primarily by its solid cash balance.
Understanding Coach’s Stock Jump after Its Latest Earnings Beat
Coach’s (COH) stock price rose 11.4% to $43.15 after it reported its results on May 2. The company is currently sitting on a YTD profit of 23%.
What Drove Coach’s Fiscal 3Q17 Earnings?
Coach (COH) reported a 5% YoY rise in its EPS for fiscal 3Q17, registering $0.46 per share.
Inside Coach International’s and Stuart Weitzman’s Fiscal 3Q17 Performances
Coach’s (COH) International business, which accounted for 43% of its top line in 3Q17, recorded a 4% YoY (year-over-year) fall in sales to $448 million.
Coach’s 3Q17 Earnings Story: Earnings Beat, Revenue Miss
For fiscal 3Q17, Coach reported earnings of $0.46 per share, beating the Wall Street analyst average estimates by $0.02.
Why Did Kate Spade Stock Plunge 15% on April 4?
Kate Spade’s (KATE) share price tanked 14.6% on Tuesday, April 4, as Reuters reported Monday evening that the handbag manufacturer had sought more time from Coach (COH) to consider its buyout offer.
Why PVH Corp Stock Just Jumped 8.5%
After PVH Corp (PVH) reported solid 4Q16 results on March 22, beating the consensus estimates, the stock jumped 8.5% and closed at $98.55 on March 23.
Why PVH Corp Stock Has Outperformed Peers
PVH Corp (PVH) delivered an above-average performance in the stock market during 2016, recording gains of 23%.
KATE’s 4Q16 Profitability Improves on Better Cost Controls
KATE’s strict cost-control measures resulted in a 390-basis-point fall in its selling, general, and administrative rate, which fell to 39.1% of its sales in 4Q16 from 43.0% in 4Q15.
How Gap Stock Has Performed
Weak same-store sales and a poor bottom-line performance have affected Gap’s stock market returns over the last two years.
Robust Online Sales Boost Kate Spade’s 4Q16 Top Line
Kate Spade New York (KATE) reported a 10% rise in its 4Q16 sales to $471 million. Its 4Q16 comps stood at 9.3%, compared to 3Q16’s 7% and 2Q16’s 4% comps growth.
KATE Stock Jumps 15% as It Confirms Strategic Alternatives
Kate Spade New York’s stock price made big strides yesterday after the company confirmed that it was reviewing strategic alternatives while reporting its 4Q16 results.
Kate Spade Beats Earnings, Confirms Strategic Review
New York–based Kate Spade (KATE) reported its 4Q16 results on February 16, 2017. The company’s earnings per share stood at $0.41.
VF Corp. Stock Offers a Better Dividend Yield than Most Peers
After delivering a 14% decline in the stock market in 2016, VF Corporation’s (VFC) stock price has already fallen 5.7% during 2017 through February 10.
Ralph Lauren Touches 6-Year Low on CEO Surprise
RL is currently trading 48% below its 52-week-high price and has fallen 15% YTD.
Inside Ralph Lauren’s Fiscal 3Q17 Results
RL delivered better-than-expected earnings and in-line revenues, but its EPS fell 18% YoY to $1.86.
Telsey Downgraded Kate Spade & Company to ‘Market Perform’
On January 25, 2017, Telsey downgraded Kate Spade’s rating to “market perform” from “outperform.” It reported fiscal 3Q16 net sales of $316.5 million.
Coach: CLSA and Atlantic Equities Downgraded Its Rating
On January 25, 2017, CLSA downgraded Coach’s rating to “outperform” from “buy.” Atlantic Equities downgraded Coach’s rating to “neutral” from “overweight.”
Coach Made New Appointment in Management
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.
Constellation Brands Gets Upgraded to ‘Buy’
Constellation Brands (STZ) has a market cap of $31.8 billion. It rose 2.1% to close at $157.99 per share on January 4, 2017.
Piper Jaffray Downgrades Michael Kors Holdings to ‘Neutral’
On January 3, 2017, Piper Jaffray downgraded Michael Kors Holdings’s (KORS) rating from “overweight” to “neutral.” It also lowered the stock’s price target from $60.00 to $48.00 per share.
Why Did Kate Spade Stock Rise on December 28?
Kate Spade (KATE) rose more than 23.0% on December 28, 2016, after the report that the company is planning to sell its businesses with the help of investment banker.