People walk past the illuminated facade of a Coach Inc. store in the Tsim Sha Tsui district of Hong Kong, China.
Brent Lewin | Bloomberg | Getty Images
Morgan Stanley on Wednesday lowered its rating on Coach to underweight from equal weight, saying the luxury brand will disappoint investors with its future financial results.
"COH achieved a +2% 4Q comp, but we question whether a sustainable turnaround is really occurring," analyst Kimberly Greenberger wrote in a note to clients.
"Our definition of a turnaround is sales growth with stable margins or stable sales with margin improvement, but COH has not delivered this yet."
