NEW YORK (TheStreet) -- Shares of luxury products retailer Coach (COH) are falling after research firm Sterne Agee lowered its rating on the stock to Neutral from Buy in a note to investors earlier today.
WHAT'S NEW: Coach's North American business has been deteriorating and the company's fortunes don't appear set to rebound in the near-term, Sterne Agee analyst Ike Boruchow wrote. Meanwhile, the company's balance sheet and cash flow dynamics are weakening, while its earnings and multiple could drop, the analyst warned. Boruchow cut his price target on the shares to $41 from $51.
WHAT'S NOTABLE: Another luxury products retailer, Michael Kors (KORS), reported stronger than expected fourth quarter results on May 28, but warned that it expects its gross margin to drop slightly this quarter versus the same period a year earlier. The stock fell significantly but has since made up some of its losses.
PRICE ACTION: In late morning trading, Coach fell 2.4% to $39.07 and Michael Kors was up 0.3% at $94.33.
Reporting by Larry Ramer.