What to Expect From Coach, Inc. (COH) Tomorrow

Looking at Kors investors can get an idea of what the luxury men’s segment can mean for a company. While Kors has been slower to introduce men’s bags, on its last earnings call management noted that men’s clothing accounted for $100 million in sales in the U.S. alone. If Coach achieves that level of success, it would push total revenue up 7% on its own. That’s not going to happen overnight, and it won’t come as one chunk, but it highlights the value that the men’s business can add to Coach.

The bottom line for tomorrow
Coach needs to have had a good holiday season to hit analyst expectations, but it should have no problem doing that. With sales on the rise, and expenses slowing, it should be able to post the 9% increase in EPS that investors need. The sales driver behind that holiday success will likely be the relatively new men’s line, with additional income from new international businesses as icing on the cake this quarter.

With four positive earnings surprises under its belt, I’m expecting Coach to once again beat the market’s expectations. Last quarter, the company beat forecasts by $0.01 per share, and I expect a similar, low-single-digit win this time around.

The article What to Expect From Coach Tomorrow originally appeared on Fool.com.

Fool contributor Andrew Marder has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Coach.

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