Coach Shares Are Getting Demolished This Morning After Bad Earnings Leak Early

UPDATE:

Coach shares are now off 13% pre-market.

EARLIER: Very strange incident this morning, that you don't see very often.

Coach just came out with earnings.

EPS missed expectations at $1.23 vs. estimates of $1.26.

Same-store sales fell 2%, vs. expectation of an increase of over 2%.

The stock is off about 10% pre-market.

But here's the weird thing.

They were apparently leaked early by an article in WomensWearDaily.

The article is gated, but a note from JPMorgan that we got about an hour ago had the details in there.

COH – WWD Article Published Overnight Citing Interview w/COH Appears To Have FQ2 Earnings Results In It (COH is Scheduled To Report @ 7amET Today) SSS, GM & EPS All Miss St.
· FQ2 NA SSS dn 2% vs. St. +2.7%, JPM +2.3%
· FQ2 EPS $1.23 vs. St. $1.29
· FQ2 GM flat/72.2% vs. St. 72.4%, JPM 72.7%
CEO L. Frankfort gave an exclusive interview to WWD
· The “disappointing” results were pulled down by the co’s women’s handbag business in NA where SSS were down 2% which were offset by strength in Int’l (China SSS up DD%). COH acknowledged new competitors but said that macroeconomic factors (i.e. impact of Hurricane Sandy, fiscall cliff, etc.) & the decision not to promote even as competitors increased markdowns played a role. · Article says that “Coach reported weaker than expected Q2 earnings today & turned in its first quarterly negative same-store-sales figure since the recession hit.”