UPDATE: Wedbush Reiterates Neutral Rating, Lowers PT on Coach
In a report published Wednesday, Wedbush Securities reiterated its Neutral rating on Coach (NYSE: COH), but lowered its price target from $62.00 to $60.00.
Wedbush noted, “COH reported 4Q EPS of $0.86, 3c better than our below-consensus estimate of $0.83 and a penny above consensus. Same-store sales were a disappointment at +1.7% vs. guidance and our +7.0% estimate and were depressed by Factory channel weakness in North America (~+35% of total revenues by our estimates and highlighted by management's couponing flip-flop in June). International sales exceeded expectations with Japan sales +16% and China sales +60% while wholesales revenues were flat. Gross margins improved by +75 bps while SG&A was well-controlled and down ~105 bps.”
Coach closed on Tuesday at $49.33.
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Tags: Wedbush Securities