Chicos deserved a pounding? It's not in the same class as Coach? But you're pessimitic about Coach's future. My aren't you a kind indivdual; especially at Christmas time. Didn't you get the gift that you wanted?
It doesn't matter what the market cap or price to sales of this stock or any other stock is. It's the amount of money that is put in the purse and left there that matters. Coach has a ROE of 44% now. It's about the ability of Coach to continue to expand and retain their high profit margins. Who knows if that will continue thou.
But I do think that they will retain their profit margins and will have opportunities for expansion into other countries as they build their luxury brand recognition. Of course they too could have set-backs like Chicos has had.
Personally, I wish that I had bought even more of this stock back when the price was hit hard.