Coach Stock Feels the Heat

Coach Stock Feels the Heat

Coach stock is taking it on the chin today, falling nearly 10% at the low as investors react to the company's fourth-quarter earnings report.

Profit for the quarter was down 12%, and the company missed analysts' expectations on sales but met them on earnings. Coach is facing some headwinds in the North American market, but continues to see success internationally; sales in China soared 35%. However, there are worries regarding the brain drain at the top.

Motley Fool analyst Jason Moser explains that as a Coach shareholder himself, he's not concerned. Coach's longtime CEO, Lew Frankfort, will be staying on as chairman. He'll be replaced by Victor Luis, head of international operations, the very segment where Coach has seen great success.

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Erin Kennedy has no position in any stocks mentioned. Jason Moser owns shares of Coach. The Motley Fool recommends and owns shares of Coach. 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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