NEW YORK (TheStreet) -- Shares of Coach (COH) are up by 0.92% to $30.60 in after-hours trading on Monday, ahead of the release of the company's first quarter earnings results, which are due out before the open tomorrow.

The New York City-based luxury apparel brand is expected to report earnings of 39 cents per share on revenue of $1.04 billion for the most recent quarter.

Earnings are forecast to be below the 53 cents per share the company reported in the year ago period while revenue is anticipated to be flat.

Additionally, analysts at Susquehanna initiated coverage of the stock with a "positive" rating and $40 price target today.

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Coach offers a "re-platformed product with clear creative direction that is design led, comprising innovative lifestyle offerings with deliberate investments in quality and unique details igniting brand resurgence and design credibility," analyst Thomas A. Filandro said.

Separately, TheStreet Ratings team rates COACH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate COACH INC (COH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for COACH INC is currently very high, coming in at 74.39%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, COH's net profit margin of 1.16% significantly trails the industry average.
  • Despite currently having a low debt-to-equity ratio of 0.36, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that COH's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.09 is high and demonstrates strong liquidity.
  • Net operating cash flow has decreased to $186.60 million or 40.96% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 84.5% when compared to the same quarter one year ago, falling from $75.28 million to $11.70 million.
  • You can view the full analysis from the report here: COH