Coach's Stock Rallies After Profit, Domestic Sales Beat Expectations

Shares of Coach jumped 8.6% in premarket trade Thursday, after the luxury accessories seller reported a better-than-expected fiscal second-quarter profit, and domestic sales that weren't as bad as forecast. For the quarter ended Dec. 27, adjusted earnings, which excluded non-recurring items, fell to $200.2 million, or 72 cents a share, from $1.06 a share in the year-earlier period, but beat the FactSet consensus analyst estimate of 66 cents a share. Revenue declined to $1.22 billion from $1.42 billion, matching analyst forecasts. North American sales dropped 20% to $785 million, with same-store sales falling 22%, but that was better than the $778.4 million, and 24.7% decline, respectively, that analysts were projecting. The stock had climbed 7.9% over the past three months through Wednesday, while the S&P 500 had gained 1%.