Part 3/5:
Looking ahead, Coach plans to reduce operating costs by an additional $65-80 million. The key area targeted for cuts appears to be staffing, which could involve store closures or workforce reductions. These steps aim to push the company's operating margins from the current 13% toward a more robust 20%, a lofty but potentially achievable goal.
Currently valued at approximately 12 times EBITDA, the company's valuation suggests that if the turnaround persists, it could present an attractive entry point for investors. However, analysts advise caution and recommend ongoing monitoring of how effectively Coach realizes its cost-cutting and margin enhancement objectives.