NEW YORK Dec 13 Coach Inc (COH.N), maker of
luxury handbags, wallets and other accessories, could see its
earnings recover from an earlier-year slump, helped by new
product launches and store openings domestically and overseas,
according to Barron's Dec. 14 edition.
Earnings for the current fiscal year ending in June 2010,
could rise 7 percent over fiscal 2009 results, to $664 million,
or $2.07 per share, on slightly higher revenue of $3.4 billion,
Barron's said. Sales at stores open at least a year could rise
3 percent after losing 7 percent in fiscal 2009, the paper
The stock, which closed at $35.84 on Friday, could climb to
$42 next year, Barron's said, citing Goldman Sachs analyst
Adrianne Shapira, who recently raised her rating on the stock
to "buy" from "neutral."
The stock traded as low as $11.41 in March.
Lew Frankfort, Coach chairman and chief executive, told
Barron's that the company can increase sales about 10 percent a
year and earnings can rise even faster once the U.S. economy
"We're a growth story," he told Barron's, citing
productivity gains in the United States and potential to expand
overseas particularly in China.
Coach shares trade at 17.4 times analysts' fiscal 2010
average estimate -- 16 times after subtracting the company's $3
a share in net cash.
(Reporting by Ilaina Jonas, editing by Maureen Bavdek)