BetterInvesting Magazine’s Stock to Study for the December issue, Coach, apparently bagged a good quarter. On Oct. 23, the New York-based leather-goods company said earnings in the most recent quarter rose by 3 percent and sales in China were up by 40 percent.
“For the quarter ended Sept. 29, Coach reported a profit of $221.4 million, or 77 cents a share, up from $215 million, or 73 cents, a year earlier. Sales increased 11% to $1.16 billion. Gross margin was flat at 72.8%,” The Wall Street Journal writes. EPS was a penny above Wall Street estimates, which helped send the stock 7% higher for the day compared with the Oct. 22 closing price.
Forbes writer Abram Brown notes that Coach “announced a $1.5 billion share buyback program, implying that Coach believes its shares are cheap. The stock trades at 15 times estimates of this fiscal year’s earnings and 13 times next year’s.”
Coach is also in the process of building a new Manhattan headquarters, a 46-story tower, The New York Times reports.
In the December edition of BetterInvesting contributor Kevin Lamiman explains that with “middle-class men in Asian countries becoming increasingly status-conscious — and fashion-conscious — Coach, Inc., is successfully exploiting the growing overseas demand for American-made luxury goods.”
“Coach remains a primarily North American chain that still caters mostly to women. Its men’s product lines and overseas markets, however, have become increasingly important to its long-term success,” Lamiman writes.
BetterInvesting Magazine goes live as a digital product on Oct. 30 and will begin to arrive in the mail the week of Nov. 13.
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