Why Coach Is Plunging Right Now
Coach plunged in pre-market trading on news of a "challenging" holiday quarter. The company is seeing a constricted consumer, waning appetite for aspirational purchases, and tough competition. It's the same environment that caused Crocs to sell off nearly 10% just the other day. However, all may not be lost. Today's sell-off seems extreme given the specifics of the earnings, and digging deeper, there are still reasons to be optimistic on Coach today.
Yet, there is no denying that it's a tough time to be a luxury retailer. Coach may not deserve this sell-off, but that still may not make it a buy today. If you're looking for something a bit safer in today's environment, you might want to check out the stock that The Motley Fool's chief investment officer has selected as his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.
Editor's note: At the 30-second mark, Austin meant to say "Crocs," not "Coach." The Fool regrets the error.
The article Why Coach Is Plunging Right Now originally appeared on Fool.com.Austin Smith owns shares of Coach. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach and Tiffany & Co. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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