If you are looking for signs of the economy hitting a brick wall this past summer, look no further than luxury retailer, Coach (NYSE:COH). The company saw its shares tank when it reported results for the June quarter. While beating Wall Street profit estimates by a penny per share in the period, Coach missed the mark on the revenue side. The culprit was slowing North American sales.
As per usual the near-20% decline the first day of trading after the news might be a bit overdone. The stock has made up half the losses since late July, but there is still room to appreciate further. Since the announcement of slowing revenue the economy has regained its foot ever so slightly. Consumer spending is strong. Look for Coach to rebound in much the same way it fell when it reports earnings this go around.