Shares of Coach Fall as JP Morgan Cuts FY Outlook, Maintains Overweight, $60 Target

Coach

shares are down more than 2 percent Friday morning, likely on the heels of a JP Morgan note in which the firm's Brian Tunick lowered his fiscal-year estimates ahead of the company's Q4 earnings, expected out on July 30th. Tunick now sees FY14 EPS of $3.90, down from $4.12 previously. The current Wall Street consensus sits at $4.12. Tunick noted the company was “highly likely” to guide below the Street consensus which is modeling for 10 percent EPS growth for the year. Tunick noted mixed expectations for same-store sales which range from a decline of 2 percent to a gain of 3 percent, a struggling Japanese market, and an increase in SG&A spending for the lowered estimates. Tunick said comparable sales below the 1-2 percent range could further damage the stock. The JP Morgan analyst maintains an Overweight rating and $60 price target on shares of Coach.