Coach Shares Are Getting Crushed After Weak Earnings Report That Was Leaked Early By A Magazine Article

By admin on January 23, 2013

Coach Shopping Retail Handbags Bags

Very strange incident this morning, that you don’t see very often.

Coach just came out with earnings.

EPS missed expectations at $ 1.23 vs. estimates of $ 1.26.

Same-store sales fell 2%, vs. expectation of an increase of over 2%.

The stock is off about 10% pre-market.

But here’s the weird thing.

They were apparently leaked early by an article in WomensWearDaily.

The article is gated, but a note from JPMorgan that we got about an hour ago had the details in there.

COH – WWD Article Published Overnight Citing Interview w/COH Appears To Have FQ2 Earnings Results In It (COH is Scheduled To Report @ 7amET Today) SSS, GM & EPS All Miss St.
·         FQ2 NA SSS dn 2% vs. St. +2.7%, JPM +2.3%
·         FQ2 EPS $ 1.23 vs. St. $ 1.29
·         FQ2 GM flat/72.2% vs. St. 72.4%, JPM 72.7%
         CEO L. Frankfort gave an exclusive interview to WWD
·         The “disappointing” results were pulled down by the co’s women’s handbag business in NA where SSS were down 2% which were offset by strength in Int’l (China SSS up DD%). COH acknowledged new competitors but said that macroeconomic factors (i.e. impact of Hurricane Sandy, fiscall cliff, etc.) & the decision not to promote even as competitors increased markdowns played a role. ·         Article says that “Coach reported weaker than expected Q2 earnings today & turned in its first quarterly negative same-store-sales figure since the recession hit.”

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