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Coach shares are now off 13% pre-market.
EARLIER: Very strange incident this morning, that you don’t see very often.
Coach just came out with earnings.
EPS missed expectations at $1.23 vs. estimates of $1.26.
Same-store sales fell 2%, vs. expectation of an increase of over 2%.
The stock is off about 10% pre-market.
But here’s the weird thing.
They were apparently leaked early by an article in WomensWearDaily.
The article is gated, but a note from JPMorgan that we got about an hour ago had the details in there.
COH – WWD Article Published Overnight Citing Interview w/COH Appears To Have FQ2 Earnings Results In It (COH is Scheduled To Report @ 7amET Today) SSS, GM & EPS All Miss St.
· FQ2 NA SSS dn 2% vs. St. +2.7%, JPM +2.3%
· FQ2 EPS $1.23 vs. St. $1.29
· FQ2 GM flat/72.2% vs. St. 72.4%, JPM 72.7%
CEO L. Frankfort gave an exclusive interview to WWD
· The “disappointing” results were pulled down by the co’s women’s handbag business in NA where SSS were down 2% which were offset by strength in Int’l (China SSS up DD%). COH acknowledged new competitors but said that macroeconomic factors (i.e. impact of Hurricane Sandy, fiscall cliff, etc.) & the decision not to promote even as competitors increased markdowns played a role. · Article says that “Coach reported weaker than expected Q2 earnings today & turned in its first quarterly negative same-store-sales figure since the recession hit.”