Trefis Morning Coffee – United Continental, Coach, Gap & Best Buy
A mid-week lift… we present our newly launched coverage of United Continental Holdings (NYSE:UAL), which was formed by the merger of United Airlines and Continental Airlines last year. The company expects the merger to deliver $1.0 billion to $1.2 billion in net annual synergies by 2013, and between $800 million and $900 million of incremental annual revenues. Turning towards retail, we take a look at the outlook for Coach’s (NYSE:COH) profit margin on handbag sales. While Coach typically enjoys high profit margins, this metric has dropped over the past few years.
Banana Republic and Old Navy fall under the Gap (NYSE:GPS) umbrella, but do you know which one adds more value to the company’s stock? Try our quiz of the day to see the answer. And feel free to take a look at today’s free company model on Best Buy (NYSE:BBY).
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United Continental Holdings – Company of the Day
We recently launched coverage on United Continental Holdings with a $28 stock price estimate. United Continental was formed after the merger of United Airlines and Continental Airlines. The merger agreement was reached in May 2010, but it wasn’t until October 2010 that the two airlines started reporting the results together.
See our complete analysis for United Continental Holdings stock
Coach – Forecast of the Day
Coach typically enjoys among the highest gross margins in the apparel and accessories industry. However, rising sourcing costs (as the cost of outsourcing labor increases) may lead to lower gross margin going forward. Coach’s strategic shift towards retail will add further pressure on margins, as the firm enjoys significantly lower margins on its retail stores than its wholesale operations.
See our complete analysis for Coach stock
Gap – Quiz of the Day
Which of these stores contributes more to Gap’s stock value?
Best Buy – Today’s Free Company Model
Get free access to Best Buy today only. This company’s model is usually only available for Trefis Pro subscribers.