Coach's Huge Earnings Problems Explained in 3 Photos
NEW YORK (TheStreet) -- Coach
In the past month alone, Coach's stock has shed 17.2%, compared to a 10.9% fall for rival Michael Kors
Michael Kors has delivered same-store sales increases of 22.9% to 36.7% over the past four quarters. Same-store sales growth at Kate Spade has been even more impressive than Michael Kors. In the most recent quarter, Kate Spade's same-store sales rose a whopping 43%, following increases of 30%, 31%, and 27%.
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According to Yahoo! Finance, analysts expect Coach to earn 53 cents per share when it announces its fiscal fourth-quarter earnings in early August. If that estimate is met, Coach's earnings per share will have fallen a staggering 40% year on year.
Not only is the street's fourth-quarter earnings estimate at risk of being missed, but earnings guidance for the new fiscal year could be disappointing. Wall Street estimates have Coach earning $1.90 per share for its fiscal year 2015 period.
Coach's weak earnings potential is evident at the store level. From eye-popping discounts cheapening the brand in real time at leading department stores, to Coach shops in Macy's
Take a look at these Coach items at 40% off at a higher end Macy's department store. Spotted in the background is a Coach shop remodel.
Coach is also available in Sears