Why Coach, Windstream Holdings, and YY Slumped Today
Tuesday was relatively calm on Wall Street, with major benchmarks finishing with mixed results but staying close to where they began the day. Absent big market-shifting news, a lot of individual stocks moved in response to the latest reports of purchases and sales of stock positions by major institutional investors, which have to disclose their trading activity every three months. Yet even amid the generally quiet mood, some companies suffered bad news that sent their share prices down sharply. Coach (NYSE: COH), Windstream Holdings (NASDAQ: WIN), and YY (NASDAQ: YY) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Coach plunged 15% after the maker of luxury handbags and fashion accessories released its fiscal fourth-quarter results. Coach reported declining sales due to a calendar-related shift, but earnings soared by 85% from year-ago levels. Yet even though comparable-store sales turned around and big cost savings helped Coach's profitability, investors weren't satisfied with the company's expectations for fiscal 2018. The recent purchase of Kate Spade should boost sales but will cost Coach some of its bottom-line growth in the near term. The bigger question is whether the acquisition will pay off in the long run, but management and shareholders alike will have to wait and see how the integration of the two companies works.
Image source: Coach.
Source: Fool.com
