Well Now! (COH)
The Market Ticker ® - Commentary on The Capital Markets
Posted 2013-01-23 07:21
by Karl Denninger
in Earnings
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Well Now! (COH)
 

Oops....

Coach got pounded this morning pre-market for about 11% as while earnings beat revenues were light ($1.5 billion .vs $1.6) and worse, US same store sales were down 2%.

But but but.... the high-end consumer was ok!  We were only pounding the poor with our ZIRP policies and deficit spending, not the rich, right?

Not so fast grasshopper!

Technically, the stock is right near the bottom end of a range that has been holding up since roughly August.  Today, if that level fails, could be truly ugly.  It looks like people expected, given the move in the stock since the start of the year, that the "challenges" that we all could see in the data were some sort of chimera rather than being real.

Bad guess folks.

Disclosure: No position.

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User Info Well Now! (COH) in forum [Market-Ticker]
Digitlman
Posts: 328
Incept: 2011-03-04

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$600 for a ****ing purse, when a perfectly good one can be had at Target for $50.

Every mall has a Coach store.

**** 'em.
Sean
Posts: 1765
Incept: 2009-04-21

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Quote:
$600 for a ****ing purse, when a perfectly good one can be had at Target Goodwill for $50 $1-$2.


On half-off Saturdays.


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* I think Ann Barnhardt is more and more right. God help us!
* Progressives / Marxists / Communists are many things, STUPID and IMPATIENT are not two of them.
* A hot civil war is coming.
* And people wonder why I prep!
Ktrosper
Posts: 1497
Incept: 2010-04-06
Silver
ft collins co
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My wife is selling the Miche system... https://www.miche.com/Home

Women are going nuts for 'em... The big selling point is that they can leave all their crap in the core, and swap out the skin.

Damn, wish I'd have come up with that idea.

Middle class target, I'm sure. I'd come unglued if she ever spent $600 for a freakin purse.

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The unexamined life is not worth living.-Socrates
The only stable state is the one in which all men are equal before the law.-Aristotle
Liberty exists now in the spaces government has not yet chosen to occupy.-Doc Zero
I anticipate that 10 Dallas Cowboys Cheerleaders will blow me this evening.-K.D
Magus
Posts: 1964
Incept: 2008-05-04
Gold
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I do not expect this to be the only high end retailer to miss

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"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

-~~Ludwig V
Pika-steph
Posts: 54685
Incept: 2007-09-11
Gold A True American Patriot!
Live Free Or Die; US Army Est. 1775
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Except for all over the national news today is gleeful cheerleading about the stock market heading for ATHs....because, they claim, 'earnings are coming in much better than expected.' smiley

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Stop the Looting; Start Prosecuting - http://www.FedUpUSA.org/
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"The only regulation that really works is failure."--Rick Santelli
Mannfm11
Posts: 3530
Incept: 2009-02-28
Gold
DFW, Tx
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I buy Coach products, namely belts and wallets. The basic black mans belt will last for years. The other brands I buy turn to crap in a matter of months. That said, some of their stuff can be put off for years if you already have some of it. $600 for a good purse isn't much. They last for years, unlike the iphone which must be replaced when the next model comes out.

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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
Tsherry
Posts: 193
Incept: 2008-12-09

Spokane WA
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My belts are made at a local harness shop, along with my wallet, the holder for my Leatherman, a holder for my Swiss Army knife, a couple other holsters and slings, etc. My entire family has shopped / ordered / had custom made stuff made by the owner, including my brother in law, who ordered a couple of rigs for his Cowboy-style firearms. One fancy, with all kinds of tooling; another that's all business.

I'll never set foot into a place like Coach. I like buying things once. Twice or three times if I like them and want additional colors or styles, but never because they wear out. I guess I'm in a small minority.
Ckaminski
Posts: 1569
Incept: 2011-04-08
Green
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All the good harness shops in the Northeast went underground YEARS ago. If they haven't disappeared altogether, they focus strictly on equestrian or BDSM. My belt request is a little too blaise for them. LOL.
Tsherry
Posts: 193
Incept: 2008-12-09

Spokane WA
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Folks here still ride for business, as well as for show. First time I was in there, many years ago, I noticed the many different long-gun scabbards. I understand they're now making them for 4 wheelers, as well has for horses. Been a while since I've been to that shop. I should get over there and support local craftsmen.

I think the harness makers would look at a BDSM customer and promptly bull-whip the poor bastard out of their shop without a non-expletive spoken. Of course, they might like that....
Ichirovader
Posts: 25
Incept: 2010-08-11

Port Orchard, WA
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Coach isn't really that high end. An old friend of my wife referred to Coach as 'Ghetto Gucci'. This friend was very attuned to the higher end shopping arena (not that she should have been spending her money, I mean, credit, on it.)
Magus
Posts: 1964
Incept: 2008-05-04
Gold
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Coach is for the top 3 to top 25%..in the scheme of things its high end. Their factory outlets handbags are about 150 and yes they last a lot longer than cheap ones. My wife is using an 8 yr old one that looks great still

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"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

-~~Ludwig V
Kareninca
Posts: 173
Incept: 2011-08-23
Silver
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"$600 for a ****ing purse, when a perfectly good one can be had at (Target) Goodwill for $1-$2."

Totally untrue, Sean. The sale day purses at Goodwill are not so great. You really have to bite the bullet and spend $5 on a regular day at Goodwill, to get a purse that is not only as good but MUCH nicer than a Target purse.

Manffm11, there is a woman out there who is looking for you, to spend your money:). Ha - I suppose if you only own one purse, and you buy it as often as you buy belts, then - - - well, then really $600 is still decadent and ridiculous for a purse. But in any case, any woman who would spend $600 on a purse, is "into" purses, and would want to own dozens and dozens of them, not just one. She would want to have a special closet for her purses. She would be visiting online websites daily to check the new ones, and getting on waiting lists for the hot ones. She would blow through ANY amount of money in a remarkably short amount of time. A marketer's dream come true; I've known such women.

Twenty ago in Chicago I had a nice African American neighbor in her 70s, whose granddaughter (whom she had raised) was into saving up her earnings and buying Coach bags *just for the tags*, which were the cool part to her and her friends. She'd give the purses themselves to her grandma. Who gave a few to me. Since they were leather (ugh) I gave them to a friend in CT, who is still using them; they are very well made.

The sort of people I know who would buy a Coach purse as a sign of decent respectability are not doing so well economically. They have a lot of their money in their own residence, and were expecting a lot more from their investments as a form of income. They're not hurting, but they're not overbuying purses, either.

Reason: copied text changed when copied
Marc2mrkt
Posts: 369
Incept: 2008-04-12
Green
Taipei
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In the local paper yesterday:

Asia luxury sales fall

Cartier watch maker Richemont SA said sales growth had ground to a halt in the Asia-Pacific region, rekindling fears about a market which has been the driving force of luxury sales in recent years. Shares in the world’s second-biggest luxury goods company fell more than 6 percent yesterday in early trading after it posted a smaller-than-expected rise in fourth-quarter sales. Other luxury stocks, which have been rallying since the start of the year on hopes that demand in China was recovering, were also dragged lower, including world No. 1 luxury firm LVMH Moet Hennessy, Louis Vuitton SA and watchmaker Swatch Group AG. “At this stage, it is unclear how business patterns may develop and how the business in the Asia-Pacific region will evolve in the near future,” Richemont said in a statement.

http://www.taipeitimes.com/News/biz/arch....

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