Handbag Brand Coach Development Accelerated To Be "Cute" Evaluation

It is understood that handbag brand Coach reform has achieved initial success.

Before the third quarter results were released, two analysts raised their valuation of Coach shares.

Although Coach's share price has risen 22% this year, Cowen's Oliver Chen has decided to raise its target price from $42 to $46.

Analysts say that "brand change seems to be more promising in the fourth quarter."

Oliver Chen said his team found that Coach's "brand development momentum is accelerating" in the 23 project data analysis and 51 Shaler Research respondents.

Oliver Chen indicates that the development of handbags in the US market will remain stable or even increase slightly, but this is also caused by the environment of the department store market in North America.

A questionnaire response to the Shaler Research survey showed that the new design that resonates with consumers can attract customers' attention and help increase the number of people in the store. There are other feedback that should improve store display and sales skills.

Wolfe Research's Adrienne Yih Tennant set the target price of Coach shares to $47.

On Friday, she said in a recent channel inspection, a millennial consumer said.

"Extremely cute. You must buy one."

Swagger handbags, like Hobo, Outlaw and Dinky, are a new part of the spring. The traditional handbag style, fabric, color and printing have been upgraded.

Swagger rainbow color patterns are evaluated by millennial consumers.

Tennant also pointed out that the company

The introduction of the "1941 series" has "successfully enhanced the brand image of Coach".

At the same time, Telsey Advisory Group's Dana Telsey did not raise her assessment of the Coach stock target price, still $44.

She said the company expects earnings per share to be 43 cents this quarter, 2 cents higher than the 41 cents predicted by other companies, and 7 cents higher than the 36 cent reported in the same period last year.

She also predicted that the same store sales in North America would drop by 1%, while the industry forecast fell to 1.4%, which represents fourth consecutive quarters of improvement.

"Although we are always looking for the negative contrast data in the third quarter, we still believe that the company's continuous improvement measures will have a positive impact on the fourth quarter," she said.

On Friday, Coach shares rose 0.7% to $40.28 a share.