Coach Is No Longer Favored And Is Rated As A Reduction Rating.

Corinna L. Freedman, a multi Banking Holding Company BB&T capital market analyst, has recently made a new rating of Kate Spade & Co. and Coach Inc. of the US luxury brand group, and has made a detailed analysis of their very different future prospects.

According to Freedman's report, the US luxury brand Coach has been marked as a "reduction" rating, which fell 5% to $34.61 in early trading in May 27th.

In addition, Freedman is skeptical about Coach's future prospects. He said, "since the senior management has worked out the change plan, nearly a year has passed, but we are worried about the progress of the company so far.

Although we believe it remains to be seen whether Coach can change the brand positioning, our expectations remain low.

At the same time, the same was once popular.

Michael Kors also dropped 22% after its earnings forecast was released.

For the US luxury clothing brand Kate Spade, Freedman thought it could be a "buy" rating with a target price of $35.

According to the company's early trading data in May 27th, its share price fell 2.4% to 26 dollars.

But in fact, earlier this month, analysts at Wedbush, a securities investment company, did likewise.

Holding the same attitude and setting it as "overweight" rating, the target price is US $39.

In the short term, Freedman believes that we may be overly concerned about the current category, and believe that the company's improvement on the strategic plan is largely based on past difficulties.

They will continue to maintain the balance of support for improvement during the implementation year, pushing valuations to a higher position relative to recent performance and competitors.

In the long run,

An increase of 20% per square foot is expected. The expansion and commercialization of Kate Spade wholesale business will stimulate the top product line, resulting in significant operating leverage, or will probably push them up the estimate of $1.85 per share in the conservative 2020 fiscal year.

The two main brands of Kate Spade & Co. are Kate Spade New York and Jack Spade. Besides, the group also owns a jewelry retailer Adelington Design, which is a private brand jewelry business.

According to the company's information, it has obtained the authorization authorization of Liz Claiborne and Monet jewelry product line.

The company currently operates 235 retail outlets.

Freedman stressed in the report that Kate Spade is currently the second fastest growing retailer, and has announced positive sales for 22 consecutive quarters.