Earnings Preview For Coach (COH, EL)

Coach COH is expected to announce its Q1 earnings report before the markets open on Tuesday, April 26. Analysts are predicting earnings per share to stand at $0.60, up 20% from the previous year's level of $0.50. Earnings per share estimate had been downgraded by $0.01 one month ago. Coach is a New York-based marketer of fine accessories and gifts for women and men. Coach's product offerings include handbags, women's and men's accessories, footwear, business cases, jewelry, wearables, sunwear, travel bags, fragrance and watches. Coach operates in two business segments: Direct-to-Consumer and Indirect. During the fiscal year ended July 3, 2010, the company introduced Poppy, which offers a variety of silhouettes. It also introduced additional lifestyle collections. During fiscal 2010, Estee Lauder Companies EL, through its subsidiary, Aramis, became Coach's fragrance licensee. Rumors have spread recently that Coach wants its shares to be listed on Hong Kong's stock exchange as well, but the company declined to confirm or deny the reports. On the day rumors started to spread, Coach's shares were up almost 4% on the previous day's closing value. At the end of last week, its shares were trading at $57.65. Investors will be hoping that good Q1 results would solidify recent gains. Investors might be encouraged by Coach's ability to outperform market expectations. Last year, Coach managed to beat market's quarterly earnings expectations on all four occasions.