Coach Takes Stock Hit in Steady Market

Shares of accessories giant fall 7.9 percent, Saks perks up above Hudson's Bay buyout price.

Coach Inc. — which showed some weakness in North America in the fourth quarter — weathered a big drop on a relatively mild day for Wall Street today.

The S&P 500 Retailing Industry Group inched up 0.1 percent, or 0.84 points, to 834, as the Dow Jones Industrial Average lost just 1.38 points to end at 15,520.59.

But Coach slumped 7.9 percent to $53.30 after its fourth-quarter profits slumped 12 percent and the company acknowledged it eliminated 200 jobs.

Shares of Saks Inc. rose 0.4 percent to $16.02 as investors tried to gauge the likelihood that another player would try to top Hudson’s Bay deal to buy the company at $ 16 a share. Saks has 40 days to find a better offer.

The day’s other gainers included Michael Kors Holdings, up 2.4 percent to $65.56; Abercrombie & Fitch Co., 1.8 percent to $49.79; Dillard’s Inc., 1.5 percent to $82.79, and Tiffany & Co., 1.3 percent to $79.65.

In the tech world, Facebook Inc. saw its stock gain 6.2 percent to $37.61. That almost returns the stock to its May 2012 initial public offering price of $38.

European markets were on the rise and led by the FTSE MIB in Milan, which advanced 1.6 percent to 16,542.90.

The CAC 40 in Paris edged up 0.5 percent to 3,986.61, followed by the FTSE 100 in London and the DAX in Frankfurt which were both up 0.2 percent, to 6,570.95 and to 8,271.02, respectively.

The euro traded at $1.33 against the dollar, while the pound fetched $1.54 and the Swiss franc equaled $1.08.

Retail and luxury stocks were mostly on the uptick, with the exception of Mulberry Group, which dipped 1.7 percent to 10.06 pounds and Unilever, which fell 2.3 percent to 29.82 euros.

Among the day’s biggest gainers were Metro AG, up 1.7 percent to 26.41 euros; Carrefour SA, 2.6 percent to 23.17 euros; and Next, 2.4 percent to 50.20 pounds, following a 2.3 percent rise in second quarter sales in the 26 weeks to July 27, and raised its first-half profit forecast by 10 million pounds.