NEW YORK, NY / ACCESSWIRE / May 9, 2017 / Huge takeover news of Kate Spade put designer handbag maker and luxury fashion brand Coach into the spotlight yesterday sending shares flying, while Callaway Golf Company fell into the red despite topping Q1 forecasts last week.

RDI Initiates Coverage on:

Callaway Golf Company
https://ub.rdinvesting.com/news/?ticker=ELY

Coach, Inc.
https://ub.rdinvesting.com/news/?ticker=COH

Callaway Golf Company's shares declined 1.55 percent to close at $12.73 a share on Monday. The stock traded between $12.63 and $12.97 on volume of 1.78 million shares traded. The company reported adjusted earnings of $0.30 a share on revenue of $308.9 million for the first quarter of 2017, which topped analysts' expectations of adjusted earnings of $0.22 cents a share on revenue of $283.7 million, according to analysts' surveyed by FactSet. The company estimates adjusted earnings to be between $0.28 to $0.31 a share and revenues to be between $290 million to $300 million for the second quarter of 2017. Shares of Callaway Golf Company have gained approximately 16.15 percent year-to-date.

"Sales of our new products, including the EPIC driver and new Chrome Soft X golf ball, have exceeded our expectations. Business around the globe remains very strong with all major regions reporting sales growth and market share gains. And our new business ventures, namely the apparel joint venture in Japan and the recently acquired OGIO business, are performing ahead of plan," commented Chip Brewer, President and CEO.

Access RDI's Callaway Golf Research Report at:
https://ub.rdinvesting.com/news/?ticker=ELY

Coach, Inc. shares raced to a new high of $46.56 on Monday after the company announced huge takeover news of rival Kate Spade. Shares closed up 4.81% yesterday on significantly higher volume than usual. Coach announced on Monday that it would be buying Kate Spade for a value of $2.4 billion. The company has signed a definitive agreement to acquire its competitor for $18.50 per share in cash, a 9% premium compared to Kate Spade's closing price this past Friday. Victor Luis, Coach's CEO, said, "Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials. Through this acquisition, we will create the first New York-based house of modern luxury lifestyle brands, defined by authentic, distinctive products and fashion innovation." Coach has reported a net profit of $0.43 a share on revenue of $995 million for the first quarter of 2017.

Luis also said in a CNBC interview that he doesn't want consumers to think Coach owns Kate Spade. He said, "We don't want consumers to any have idea that there is a link. We don't think it's relevant. It's the current scenario with Stuart Weitzman [and Coach]. To that end, there won't be links between the brands online. All the connection will be on the back end of the business."

Access RDI's Coach, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=COH

Our Actionable Research on Callaway Golf Company (NYSE: ELY) and Coach, Inc. (NYSE: COH) can be downloaded free of charge at Research Driven Investing.

Research Driven Investing

We are committed to providing relevant and actionable information for the self-directed investor. Our research is reputed for being a leader in trusted, in-depth analysis vital for informed strategic trading decisions. The nimble investor can leverage our analysis and collective expertise to execute a disciplined approach to stock selection.

RDInvesting has not been compensated; directly or indirectly; for producing or publishing this document.

Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

CONTACT

For any questions, inquiries, or comments reach out to us directly at:

Address:

Research Driven Investing, Unit #901 511 Avenue of the Americas, New York, NY, 10011

Email:

contact@rdinvesting.com

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: RDInvesting.com