Coach feels the heat

Investors in the luxury accessories retailer worry over management changes and missed sales.

By Motley Fool Jul 30, 2013 2:41PM
Coach (COH) stock is taking it on the chin Tuesday, falling nearly 10% at the low as investors react to the company's fourth-quarter earnings report.

Profit for the quarter was down 12%, and the company missed analysts' expectations on sales but met them on earnings. Coach is facing some headwinds in the North American market, but continues to see success internationally; sales in China soared 35%. However, there are concerns regarding the brain drain at the top, with at least three top executives expected to be replaced.
Image Source, Getty Images

Motley Fool analyst Jason Moser explains that, as a Coach shareholder himself, he's not concerned. Coach's longtime CEO, Lew Frankfort, will be staying on as chairman. He'll be replaced as CEO by Victor Luis, head of international operations -- the very segment where Coach has seen great success.

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3Comments
Jul 30, 2013 3:31PM
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I'm forwarding this to my female family members.  I'm sure the company will be healthy by the end of the week.
Jul 30, 2013 5:16PM
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Coach turned to garbage when they decided to make their stuff overseas instead keeping it in the US (at inflated prices).  I have vintage pieces from the 80s & 90s that make these new purses look like crap.  No wonder they're in trouble.
Jul 30, 2013 5:02PM
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Don't you girls have enough purses already?
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