Another Analyst Cuts Estimates on Coach Ahead of Q4 Results, Cites Several Concerns

Shares of Coach

are continuing lower Monday afternoon following some concerning comments in a Brean Capital research note from earlier. After falling about a half percent on Friday amid lowered estimates from JP Morgan's Brian Tunick, the stock is down about 1.6 percent Monday as Brean's Eric Beder also reduced his estimates on the handbag maker. Beder cited general competition and concerns with forex headwinds coming out of Japan. The analyst also pointed to a recent uptick in discounting at full-price stores. Beder believes Coach's recent expansions into the apparel and shoe categories will likely crimp gross margins. Beder is now modeling for Coach to report Q4 earnings of $0.83 per share, down from his prior estimate of $0.86. The analyst's FY14 EPS estimate moved from $4.00 to $3.96. Brean Capital maintains a Hold rating on shares of Coach. Coach is expected to report Q4 earnings on Tuesday, July 30th.