Why Coach (COH) Stock Is Gaining In Pre-Market Trading Today

NEW YORK (TheStreet) -- Shares of Coach Inc. (COH) are higher by 2.56% to $35.19 in pre-market trading on Tuesday, after the company reported net sales and income for the 2014 fourth quarter that exceeded analysts' expectations.

For the most recent quarter, the designer accessories and apparel retailer, posted net income of $164 million, or 59 cents per diluted share, compared to net income of $254 million, or 89 cents per share for the 2013 fourth quarter.

Analysts polled by Thomson Reuters expected Coach to report earnings of 53 cents per share.


Coach's reported net income for the quarter of $75 million, or 27 cents per diluted share versus $221 million, or 78 cents per diluted share for the year ago quarter.

Revenue for the 2014 fourth quarter declined to $1.14 billion, from $1.22 billion for the year ago period. Analysts expected revenue of $1.09 billion for the 2014 fourth quarter.

Separately, TheStreet Ratings team rates COACH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate COACH INC (COH) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."

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