Tag: accessories

Coach: Earnings Scorecard – Analyst Blog

Filed in earnings, euro, Gold Investing, Gold Prices, ubs by on May 19, 2010 0 Comments

Coach, Inc. ( COH ), the designer and marketer of fine accessories and gifts, posted better-than-expected third-quarter 2010 results on April 20, 2010 on the heels of strong top-line growth and competitive pricing. Wall Street analysts have now had nearly a month to digest the news. Below we cover the recent earnings announcement, subsequent analyst estimate revisions and Zacks ratings for the short-term and long-term outlook for the stock. Earnings Report Review Coach’s quarterly earnings of 50 cents a share outpaced the Zacks Consensus Estimate of 46 cents, and jumped 31.3% from 38 cents delivered in the prior-year quarter. New York-based Coach said that total net sales climbed 12.3% year on year to $830.7 million. Direct-to-consumer sales jumped 15% to $726 million, driven by a 5.1% rise in the North American comparable-store sales and strong growth in the China business, which showed a double-digit rate increase in comparable-store sales. Indirect sales dropped marginally by 1% to $105 million due to lower shipments to U.S. department stores. (Read our full coverage on this earnings report: Coach Q3 Better Than Expected ) Earnings Estimate Revisions – Overview The Zacks Consensus Estimate has been on the rise since the earnings release. The rise in sales was a positive indication for the luxury-goods designer, battered by the recent economic downturn. Coach, the maker of handbags, wallets, shoes and other accessories, lowered prices on some of its merchandise, and introduced new styles to improve sales as consumers cut spending. The company’s long-term growth drivers include expansion of its global distribution model and forays into under-penetrated markets. After North America and Asia, Coach now plans to extend its global footprint in Western Europe. Agreement of Analysts In the last 30 days, 16 analysts out of 20 covering the stock raised their estimates for the upcoming fourth quarter, while five analysts raised and one analyst dropped estimates for the following quarter. For fiscal 2010 and 2011, 19 and 18 analysts raised their estimates, respectively. Magnitude of Estimate Revisions The Zacks Consensus Estimate for the upcoming fourth quarter moved upwards by 3 cents a share, and jumped 2 cents for the following quarter in the last 30 days. Moreover, the Zacks Consensus estimate for fiscal 2010 is up 8 cents, while for fiscal 2011, it is up 11 cents a share. The estimates in the current Zacks Consensus for fourth-quarter 2010 range from a low of 53 cents to a high of 59 cents. For fiscal 2010, the estimates range from $2.21 to $2.29. Coach in Neutral Lane Coach boasts a proven strategy of investing in stores to enhance store sales productivity through product innovation, compelling pricing strategy, new merchandise assortments, and a cost-effective global sourcing model, which should help drive comparable-store sales and operating margins over the

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Harley-Davidson Slips Badly – Analyst Blog

Filed in Debt, economy, Gold Investing, Gold Prices, Guidance by on January 22, 2010 0 Comments

Harley-Davidson ( HOG ) has reported a loss of $147.2 million or 63 cents per share in the fourth quarter of 2009, compared to an income of $91.9 million or 40 cents per share in the comparable period a year ago. Compared to the Zacks Consensus Estimate of a loss of 34 cents per share, this loss is pronounced. According to Harley-Davidson, a difficult economy and the planned actions that resulted in huge restructuring charges ($224 million) are the key factors behind the loss. Revenue plummeted 40% to $764.5 million. Revenue from Harley-Davidson motorcycles went down 46% to $552 million. The company shipped 35,938 motorcycles to dealers and distributors worldwide, down 53% from the year-ago level but in line with the previous guidance of 35,000 units–40,000 units. Revenue from Parts and Accessories totaled $144.6 million during the quarter, down 5%, and revenue from General Merchandise declined 3% to $66.8 million. Retail sales of Harley-Davidson motorcycles decreased 21% worldwide, 28% in the U.S. and 10% in international markets. Industry-wide U.S. retail heavyweight (651cc+) motorcycle sales declined 21% during the quarter. Harley-Davidson Financial Services (HDFS) recorded an operating loss of $7.1 million in the quarter, compared to an operating loss of $24.9 million in the fourth quarter of 2008. This was attributable to a decrease in impairments on retained securitization interests and a decrease in fair value write-downs on held-for-sale receivables, partially offset by an increase in the provision for retail loan losses. Annual Results In 2009, Harley-Davidson showed a profit of $70.6 million compared to $684.2 million in 2008, a decrease of 90%. Earnings per share decreased to 30 cents from $2.92 in 2008. This was lower than the Zacks Consensus Estimate of 37 cents per share. The results reflected lower motorcycle shipments, restructuring expenses and Buell product line exit costs, besides non-cash charges related to HDFS. Revenue in the year dipped 23% to $4.29 billion. Revenue from Harley-Davidson motorcycles went down 25% to $3.17 billion on shipments of 223,023 units. Revenue from Parts and Accessories slipped 11% to $767.3 million in 2009, while revenue from General Merchandise decreased 10% to $282.2 million. Retail sales of Harley-Davidson motorcycles decreased 23% worldwide, 26% in the U.S. and 15% in international markets. Industry-wide U.S. retail heavyweight motorcycle sales declined 37%. HDFS reported an operating loss of $118 million, compared to an operating income of $82.8 million in 2008. Financial Position Cash and cash equivalents totaled $1.6 billion as of December 31, 2009. Long-term debt amounted to $4.1 billion as of the above period. The long-term debt-to-capitalization ratio was as high as 72%. In 2009, operating cash flow was $609 million, in sharp contrast to an outflow of $608 million in the prior year. Meanwhile, capital expenditures reduced to $117 million in the period under review from $229 million in 2008. The company expects capital expenditures of between $235 million–$255 million in 2010, including $95 million–$110 million to support restructuring activities. Looking Ahead Harley-Davidson expects to ship…

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