You know when you see a press release and your first reaction is something like “YES! I nailed this sucker!”. That’s what I thought as soon as I saw the TPR release. Right for the right reasons. Bought back two more licenses – that’s four in 3 quarters (Coach Aussi and SWeitzman in Northern China) – Coach brand stabilizing, and other businesses in line with KATE integration progressing well. Beat the quarter -- $0.04 ahead of the Street and in line with our model. Then I saw the pre-market trade and said something like “What the !$#%!?”. The guide looked fine to me, but not for the Street. The company took up the bottom end of the year – but did not flow through the 3Q beat to the high end. I’d have done the same exact thing if I were TPR IR. If you’ve missed this long side, this is your shot. The story is playing out, and the market is giving you a gift. I think the sell-side will be upgrading this stock at $80.
More to come after cc.
