NEW YORK (TheStreet) -- William Blair downgraded Coach (COH) to "market perform" from "outperform." The firm said the company's plan for transformation encompasses many moving pieces, which makes it difficult to have visibility on when the initiatives will effect top line.
The stock was down 1.77% to $35.06 in pre-market trading on Friday.
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- COH's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.23, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for COACH INC is currently very high, coming in at 75.16%. Regardless of COH's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, COH's net profit margin of 17.34% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Textiles, Apparel & Luxury Goods industry. The net income has decreased by 20.2% when compared to the same quarter one year ago, dropping from $238.93 million to $190.74 million.
- Net operating cash flow has decreased to $104.87 million or 49.91% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: COH Ratings Report
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