Coach's Truly Blue Day...

I've been a Coach (COH) investor and e-mail list subscriber since early 2005. They reported fiscal 4th Qtr earnings this morning. Gross Margin increased a healthy 25.2% over last year's numbers. Their bottom line grew to an enormous 48.6%, earning a diluted $1.00 EPS (versus $0.68 a year ago). Estimates had earnings coming in $0.98 a share. I think Coach did exceptionally this quarter - and it's not the first time they've exceeded expectations. Coach also increased their full year fiscal 2006 guidance on earnings to "at least" $1.24 a share (on sales of around $2.1 billion), up from analyst estimates of $1.21 a share.

Apparently the rest of shareholders aren't as happy as I am, sending shares down (right now) over 5%. This comes as a double shock, considering Coach just reached their 52-week high of $36.42 YESTERDAY (see 5-day chart below) .

Investors are always so fickle. I guess I can't relate to today's mass dumping of shares - I'm a buy and hold type of investor (because I believe in my companies so much).

For the long run, I think Coach is a valuable investment. Their earnings release also signaled a increase in market share. I think that's pretty visible from everyday life. Whenever you're out, try and notice how many people are carrying Coach bags. More people carry Coach bags than you can imagine. (see Trends Based on Daily Life, #4)

On that note, feel free to check out Coach's brand new (appropriately named for today's more solemn stock performance) True Blue collection.

P.S. Coach finished down $0.80 for the day at $34.75.