2014

The Zacks Analyst Blog Highlights: Coach, Michael Kors Holdings, Kate Spade and Hanesbrands


CHICAGO, June 23, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Coach, Inc. (NYSE: COH-Free Report), Michael Kors Holdings Limited (NYSE: KORS-Free Report), Kate Spade & Company (NYSE: KATE-Free Report) and Hanesbrands Inc. (NYSE: HBI-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

Freefall for Coach Shares, Future Looks Bleak

Troubles for luxury retailer, Coach, Inc. (NYSE: COH-Free Report) seem far from over. Yesterday at the investors' day conference, the company announced 70 store closures and projected a double digit dip in its revenues for fiscal 2015. This triggered a massive sell off leading to 9% erosion of market cap.  Year to date stock price has fallen over 35%.

Moreover, Coach expects same store sales in North America to decline in high-teens in the fiscal. Meanwhile, operating margins are expected to be around high teens as the company increases investments across board.

Coach has been in troubled waters for quite sometime now. Fashion obsolescence remains a major concern for Coach's business model, which involves a sustained focus on product and design innovation. It is a chilling reminder of what happens when consumer preference change drastically and company fails to keep up with the changing trends.

Moreover, emergence of other big names like Michael Kors Holdings Limited (NYSE: KORS-Free Report) and Kate Spade & Company (NYSE: KATE-Free Report) in the premium handbags market has taken a lot of business away from Coach.

Recently, Coach posted third-quarter fiscal 2014 earnings of 68 cents a share that beat the Zacks Consensus Estimate of 63 cents but tumbled 19% from 84 cents delivered in the prior-year quarter.

Moreover, net sales for the quarter came in at $1,099.6 million, down about 7% from the year-ago quarter and also fell short of the Zacks Consensus Estimate of $1,134 million due to softness in the North American market. On a constant currency basis, sales decreased 5%.

To improve its performance, the company has resorted to vigorous international and online expansion, utilizing the opportunities in the growing men's accessory category and lastly, restructuring the domestic operations by new product launches. Moreover, the company will cut back on discounts and flash sales in favor of a semi-annual sale.

On the international front, China might provide the much needed relief as Coach expects sales to grow substantially in the next five years.

We believe that things might get worse for Coach before they get better. However, we would like to label Coach as a wait and see story.

Currently, Coach carries a Zacks Rank #3 (Hold). Another retailer worth consideration includes Hanesbrands Inc. (NYSE: HBI-Free Report), which sports a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on COH - FREE

Get the full Report on KORS - FREE

Get the full Report on KATE - FREE

Get the full Report on HBI - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

 

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

 

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

 

SOURCE Zacks Investment Research, Inc.



RELATED LINKS
http://www.zacks.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.