Coach was crashed for a reason last quarter, but whoever is still shorting this stock fails to realize the company has made a quick turnaround. In the last couple of quarters, Coach has little newness to offer to its customers. As a result, its market share is grabbed by Kate Spade, MK, and numerous small brands. Coach's management knows it, and that's why they roll out the Legacy collection this quarter. From my team's observation, Coach stores' traffic has gone up tremendously compared to the second quarter. Coach has won back the market share.
If you still could not get over the lousy second quarter, you are too slow to react to new information. Don't wait until the earning day to cover your short position. It would e too late.