Earnings Preview: OpenCoach

OpenCoach (COH) is expected to report Q4 earnings before market open Tuesday, July 29, with a conference call scheduled for 8:30 a.m. ET.

Guidance

Analysts are looking for a profit of 50c on revenue of $779.64M. The consensus range is 50c to 52c for EPS, and revenue of $767.7M to $785.32M, according to First Call. In April, Coach forecast Q4 EPS of 50c and revenue of about $780M. Coach also forecast FY08 EPS of $2.06 and revenue of $3.18B, in-line with First Call consensus estimates.

Analyst Views

In a May 22 research note, Pali Research said that while the company is facing its "first tough environment," it may emerge as an even stronger company. The firm, which reiterated its Buy rating and raised its price target to $40 from $37, said Coach continues to remain confident in 500 full price North America stores and 125 factory outlets. In order to offset weak traffic, Pali said Coach's management has made "the right moves," including moving up product introductions and the ability to react to consumer demand for sub-$200 items. Morgan Stanley, however, believes that retail sales will decelerate and does not expect stimulus support next year.