Coach crushed on disappointing earnings
The luxury handbag maker couldn't meet expectations in its recent quarter. Shares fall 15%.
Not only did the the luxury retailer's fiscal third-quarter earnings get released early Wednesday to Women's Wear Daily, they were a huge disappointment to boot. Wall Street wasn't pleased and shares of the New York company plunged 15%.
The high-end handbag maker reported a profit of $352.7 million, or $1.23 per share, compared with $347.5 million, or $1.18, a year earlier. That was a nickel under Wall Street expectations. Revenue rose 4% to $1.5 billion, below the $1.6 billion analysts had forecast. Coach clearly expected to do better.
In the earnings press release, CEO Lew Frankfort said the holiday season in North America proved challenging. "Most broadly, the consumer was impacted by a muted macroeconomic environment, while in the women’s handbag category, competition intensified and promotional activity increased," he added.
Coach is not the only luxury retailer feeling the pain of the 1 percenters. Cie. Financiere Richemont SA (CFR), owner of Cartier and Montblanc, reported disappointing earnings Tuesday and gave a cautious outlook. Tiffany (TIF) is also in Wall Street's doghouse after reporting worse-than-expected results.
Consumer confidence plunged in December over fears that the U.S. economy would go over the fiscal cliff. Though that calamity was avoided, investors remained worried about the fight over the debt ceiling.
Congress is well aware of these concerns. The House of Representatives Wednesday is set to vote on a measure to extend the government's borrowing capacity to fund its operations for three months. According to the Associated Press, the bill has the "tacit support" of President Obama.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
More on moneyNOW
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Quiet action continues with the S&P 500 drifting within a point of its session high, which also represents a new intraday record high for the benchmark index.
Furthermore, today's modest advance gives the S&P 500 its fourth consecutive gain for a total increase of 1.9% since the end of last week. Blue chips have led this week's rally as the Dow Jones Industrial Average holds a week-to-date gain of 2.3%, while small caps have faced a bigger challenge. The Russell ... More
More Market News
But the fact that the guilty bankers are still free and not even on the run is the real outrage here, a travesty that should never be forgotten.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'