) to hold from buy.
Analyst Michael Pachter says third quarter results were in line with estimates, but says management provided fourth quarter guidance that was significantly below his $0.06 earnings per share estimate and the consensus $0.01 EPS estimate. Pachter says fourth quarter guidance was based on a precipitous drop in third quarter wholesale revenue, with expected orders of women's footwear off as much as 80%. He notes management also guided the fiscal 2003 (May) EPS range below his $1.00 estimate. In light of the new guidance, Pachter now sees $0.60 fiscal 202 EPS, and $0.75 fiscal 2003 EPS. He says he continues to like the company, and expects Vans to to get its women's business back on track by the end of fiscal 2003.