Coach, Inc. (NYSE: COH), a leading modern fashion company based in New York City, today reported fiscal 2016 second quarter results for the period ended on December 26, 2015.
The quarterly results marked the luxury handbag maker`s quarterly revenue miss while beat the earnings estimates at the same time. Coach reported a 4.5 percent boost in revenue to $1.27 billion in the period, which missed Zacks consensus estimates of $1.3 billion and Thomson Reuter`s consensus estimates of $1.28. The quarterly earnings increase to $0.68 a share, beating Zacks Consensus Estimate of $0.65 and Thomson Reuter`s consensus estimates of $0.66. It`s worth noting that Coach brand sales actually fell 3 percent to $1.18 billion. However, the luxury shoe brand Stuart Weitzman, bought by Coach, Inc. in last year, contributed $94 million in revenue.
Victor Luis, Chief Executive Officer of Coach, Inc., said, “We are very pleased with our second quarter performance, which was consistent with our expectations and reflected the most significant progress to date on our transformation plan despite the difficult retail environment globally. We drove further sequential improvement in our North America bricks and mortar business - led, as expected, by our retail stores, while our outlet store channel also strengthened against a backdrop of lower tourist traffic and a highly promotional environment. Our international businesses posted strong growth on a constant currency basis, highlighted by double-digit increases in Europe, and Mainland China, as well as sales gains in Japan. Overall, our results continue to give us confidence that the cumulative impact of our actions will result in a return to top line growth this fiscal year and positive North American comps by our fourth quarter.”
Coach shares have fallen slightly more than 7 percent since the beginning of this year and 19 percent in the last 12 months. The earnings beat signals send Coach`s shares jumped up to 12% in today`s trading.