So far out of who has reported everyone in the retail segement is guiding lower. AEOS getting hit, Chico's SSS decline more than expected. SHOO guides lower. High end retailer Saks guides lower. TLB not doing so hot either. If you think COH is immune to the problems in the retail segment, think again. If people are stopping spending on the lower priced items, they'll definately stop spending on the higher priced items first.
Hi Alan -Thanks for the congrats! I believe in COH management, the company and the product. Maybe just call it womens intuition, but so far it works for me. I have been following the stock forever, but only bought about a year ago and held through ups and down and have done well. Also, do some trading when it pulls back. Good luck! I have been buying COH bags long before I owned the stock, just always loved their products.
By the way Brad, Saks announced 17% increase in 4Q sales and a 25% SSS increase for February. They went from negative 4Q earnings the year before to positive earnings. And they expect to double the operating margins within three years. All due to the fact that it has dumped its non-luxury stores and are concentrating on their luxury brand. How sad for them; the future does look bleak.
While others predicted the collapse of Coach, your failure to panic has paid off. Who would have thought that Coach would climb so much the last couple of days given the substantial market decline.
I sold a bit around 49.75 when Coach was climbing but still own a fairly large position. The fact is that nobody has a crystal ball and can't accurately predict the movement of any stock.
I totally disagree because you can't really compare COH to those other retailers. Spring is approaching and most women want a new Spring bag to brighten up their wardrobe. Also you have Mothers Day and graduations coming up in the Spring. I already know the one I want! Good luck to all longs!
Don't you think they'll want new clothes first off? Clothes at those retailers are cheaper than COH bags by a wide margin! If new clothes aren't selling, what makes you think these people are going to spend a lot more on just a bag? Crude oil going up after huge draw downs. More a squeeze on these people at the pump. They will pull back their spending somewhere, I'm betting it's with COH!
Too early to throw in towel. Economy is moving at healthy pace, it's just little warning economy might cool . definitely cooled speculative investing in emerging market using cheap bollowing rate Japanese yen buy stocks. I don't think this transulate very clearly to COH business. Guidance by others you listed are not true indication or extrapolated accurately to COH
Brad..you're only pointing out the obvious. Everyone that follows retail knows we're heading into the softer quarters of the year. We all know COH will probably tail off and rest in the low 40's and maybe high 30's in the coming months. Why you single out COH as your target is what escapes me. COH continues to execute and will be fine..I'd be preparing for how to best play the run this year to 60-70.