Coach's Stock Surges After Profit, North American Sales Beat Expectations

By Markets MarketWatch Pulse

Coach Inc.'s stock surged 2.4% in premarket trade Tuesday, after the luxury accessories retailer reported fiscal fourth-quarter earnings that beat expectations. Earnings for the quarter ended July 2 rose to $81.5 million, or 29 cents a share, from $11.7 million, or 4 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 45 cents, beating the FactSet consensus of 41 cents. Revenue increased to $1.15 billion from $1.00 billion, just shy of the FactSet consensus of $1.16 billion. North American sales rose 9% to $606 million, above the FactSet consensus of $591.8 million, while domestic same-store sales grew 2% to beat expectations of 1.8%. Stuart Weitzman sales came in at $84 million, above the FactSet consensus of $81.6 million. For fiscal 2017, Coach expects revenue to increase in the low-to-mid single digit percentage range, while the current FactSet consensus of $4.68 billion implies 4.1% growth. The stock has soared 27% year to date through Monday, while the S&P 500 has gained 6.7%.

Continue Reading Below

Copyright © 2016 MarketWatch, Inc.