Coach Earnings Rise, but Sales Forecast Eases
January 31 2017 - 8:21AM
Dow Jones News
By Imani Moise
Coach Inc. said earnings and revenue rose in the most recent
quarter as the retailer pulled back from its struggling North
American wholesale business.
The luxury handbag retailer also gave a more cautious outlook,
though, citing a stronger U.S. dollar in recent months. Coach now
expects revenue growth in the low single digits, when it had
previously projected low-to-mid single digit growth.
Coach has worked to elevate its brand to combat the promotional
activity plaguing the handbag industry. In addition to pulling out
of hundreds of department stores throughout the year, last month
the company recruited pop singer and actress Selena Gomez to be the
new face of the brand to appeal to younger shoppers.
North American Coach brand sales increased 2% to $744 million
during quarter, led by a 5% increase in direct sales and 4% growth
in same-store sales.
Internationally, sales of the brand rose 3% to $448 million led
by 6% and 9% growth in China and Japan, respectively.
In all for the second fiscal quarter, which included crucial
holiday sales, Coach reported a profit of $199.7 million, or 71
cents a share, up from $170.1 million, or 61 cents, a year earlier.
On an adjusted basis earnings rose to 75 cents a share from 68
cents a year ago.
Revenue rose 3.8% to $1.32 billion.
Analysts polled by Thomson Reuters had forecast earnings of 74
cents on $1.32 billion in revenue.
Shares of coach rose 2.2% premarket to $36.78.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
January 31, 2017 08:06 ET (13:06 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Tapestry (NYSE:TPR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tapestry (NYSE:TPR)
Historical Stock Chart
From Apr 2023 to Apr 2024