Coach (COH) is set to report Q2 results tomorrow before the open with a conference call to follow at 8:30 AM ET. Co reported last quarter's results at 6:45 AM ET. Current Q2 Capital IQ consensus stands at EPS of $0.74 (vs. $0.68 last year) on revs up 2% to $1.32 bln.

  • Last quarter, COH reported in-line EPS, missed on revs, and reaffirmed its FY 17 guidance.
    • The co continues to expects revs to grow low-to-mid single digits, ex-fx
    • Maintained operating margin forecast of 18.5-19%
    • Continued to project double-digit growth in EPS
    • Expects Coach brand directly operated square footage to grow lsd globally
    • Internationally, co expects msd increase in sq footage led by growth in Europe and msd increase in mainland China
    • Outlook assumes positive low single-digit comp for the brand in North America for the year and in each quarter
  • Consensus Estimates of FY 17 EPS of $2.13 (+8%) on revs of $4.6 bln (+2%).

Analyst Actions

  • On January 25, CLSA downgraded to Outperform from Buy
  • On January 25, Atlantic Equities downgraded to Neutral from Overweight
  • On January 3, Jefferies removed from Franchise Pick List