Optimism On Coach Remains For Cowen, As Survey Results Come In Strong - Macy's (NYSE:M)

Cowen analyst, Oliver Chen, expressed his optimism about

Coach IncCOH

shares. The confidence was due to its Consumer Tracker Survey, which indicated gains on a year-over-year basis in June and July. The brokerage maintains its Outperform rating on the company's shares.

The brokerage pointed out that a large acceleration was leading the charge since March, with millennials in particular heading the trend.

Altough results from its REIT, Retailing and brands continue to be mixed on outlet traffic, the lead analyst expects enhanced results from the second half of the current year pointing out the normalizing weather and enhanced forex comparisons.

After inflection in April, outlet visitation strengthened further with millennials leading the charge. The analyst thinks that the current weakness is a favorable factor for traffic to the outlet channel.

The lead analyst told his clients in a research note, "Visitation to U.S. outlet centers by U.S. consumers among our total survey population is up +400 bps on a sequential basis since the March 2016 trough and continues to outpace mall traffic (LINK). Recall that our Tracker only surveys U.S. consumers and does not reflect foreign tourist visitation."

The brokerage pointed out the comments of Macy's Inc M's management indicating improved sales trends in big tourist stores in the second quarter.

At time of writing, Coach shares were down 1.44 percent at $39.73.

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