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Coach, Inc. (COH - Analyst Report), the apparel, accessories and footwear designer, is slated to report second-quarter fiscal 2014 results on Jan 22, 2014. In the last quarter earnings of 77 cents a share came in line with the Zacks Consensus Estimate. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

The N.Y. based company disappointed on the sales front that fell 1%, after increasing 6% during fourth-quarter fiscal 2013, due to sluggishness in the North American market, and also fell short of the Zacks Consensus Estimate. The bottom line also failed to impress. Further, a mature domestic market and difficult consumer spending environment remain causes of concern.

Earnings Whispers?

Our proven model does not conclusively show that Coach is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Negative Zacks ESP: Coach currently has an Earnings ESP of -2.68%. This is because the Most Accurate estimate stands at $1.09, while the Zacks Consensus Estimate is pegged at $1.12.

Zacks Rank #4 (Sell): Coach holds a Zacks Rank #4 (Sell). We caution against stocks with Zacks #4 and #5 Ranks (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:  

HomeAway, Inc. (AWAY - Snapshot Report), Earnings ESP of 14.29% and a Zacks Rank #2 (Buy).

Columbia Sportswear Company (COLM - Snapshot Report), Earnings ESP of 6.67% and a Zacks Rank #2 (Buy).

The Hain Celestial Group, Inc. (HAIN - Analyst Report) Earnings ESP of 1.14% and a Zacks Rank #2 (Buy).
 

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