Coach Inc. shares surged 9.3% in premarket trade Tuesday, after the luxury accessories maker beat profit and sales estimates for its fiscal first quarter. Coach said it had net income of $119 million, or 43 cents a share, in the quarter to September 27, down from $218 million, or 77 cents a share, in the same period a year ago. Excluding restructuring charges, per-share earnings came to 53 cents, ahead of the FactSet consensus of 45 cents a share. Sales came to $1.04 billion, down from $1.15 billion a year ago, but also ahead of the FactSet consensus of $1.001 billion. Chief Executive Victor Luis said international growth was offset by weakness in the North American handbag business. "We have made progress on the transformation plan outlined this summer to address brand challenges and bring greater fashion relevance to Coach across the three pillars of product, stores and marketing," he said in a statement. Coach shares are down 36% in the year so far, while the S&P 500 has gained 6.1%.
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