Deutsche Bank Looks Into Coach Ahead Of Tuesday's Earnings

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In a report published Monday, Deutsche Bank analysts maintained a Hold rating on Coach Inc COH, with a price target of $39, ahead of the company's F3Q results.

The company is scheduled to report its F3Q results on April 28. The analysts expect Coach to report its EPS at $0.37 and revenue at $957M, representing a 13 percent y/y decline. Gross margins are estimated at 70.6 percent and operating margins at 14.6 percent, representing y/y declines of 50bps and 930bps, respectively.

Coach's share price surged about 9 percent after the company reported its F2Q results ahead of low expectations. The stock is up about 13 percent year-to-date.

In the report Deutsche Bank noted, "Management has articulated a comprehensive five-year turnaround strategy for North America and its initiatives in product, store design, and marketing are perhaps beginning to drive some improvement. Nonetheless, financial metrics continue to be weak and uncertainty remains over whether Coach’s brand transformation will be successful."

On the call, the analysts would be listening for the following:

  • North America comp performance
  • Are the remodeled stores still comping positively?
  • Commentary on tourism trends
Posted In: Analyst ColorReiterationAnalyst RatingsDeutsche Bank
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