Tomahawk, WI 08/06/2014 (Basicsmedia) – Investors continue to raise concerns as to the direction that Coach Inc. (NYSE:COH), Whole Foods Market, Inc. (NASDAQ:WFM), Panera Bread Co (NASDAQ:PNRA) and Target Corporation (NYSE:TGT) are following in the market, amid concerns of bottoming. Coach Inc. (NYSE:COH) has already made a big directional shift and is now housing more products for men, which CNBC’s, Jim Cramer, thinks it could pull off easily. China sales also seem to be working extremely well for coach having done $700 million in men’s fashion sales as well as $500 million in revenue over the course of the year.
Cramer maintains that Coach Inc. (NYSE:COH)’s CEO, victor Luis is finally getting things right in the fashion store despite a 17% drop in same-store sales in the U.S. “ When you do $700 million in men’s fashion sales $500 million in Chinese revenue over the course of the year that is big. Chief executive officer, Victor Luis, finally sounds is like he has a hand on things even as the company’s North America sales were down 17% a terrible number” said Cramer.
Despite Coach Inc. (NYSE:COH) commanding a good dividend that currently yields 3.77%, Cramer remains uncertain as to whether the company is headed up as many people seem to think.
Decelerating store sales is one of the things that is making Cramer remain cautious over Whole Foods Market, Inc. (NASDAQ:WFM), taking into consideration that, The Kroger Co. (NYSE:KR) is on the other hand doing well and is cheap. Another thing that is working against Whole Foods is the fact that it is trading at 26X times its earnings with Kroger, which is cheap trading at 15x its earnings. Kroger also has an impressive buyback that makes it attractive compared to Whole Foods.
“[…] still I can’t justify paying 26x earnings for Whole Foods Market, Inc. (NASDAQ:WFM) when Kroger with better numbers trades at 15X earnings especially since Kroger also has a very healthy buyback,” said Cramer.
Panera Bread Target Corporation (NYSE:TGT) on the other hand looks like it won’t plummet further, despite the unexpected exit of its CFO; the stock only declined by 1.17% raising optimism that it could make improvements. Panera according to Cramer is showing some confidence in the market by repurchasing a good amount of its stock in the market.
Security breach and the Canadian Debacle continue to hold Target hostage although its dividend yield is at an impressive 3.5%. Cramer remains optimistic that the damage from the breach will die out finally and with a turnaround strategy; things could turn out for the better going forward.