UPDATE: Coach Shares Gain After Upbeat Q1 Earnings

Shares of Coach COH gained more than 2.4% in pre-market trading after the company reported better-than-expected earnings for the first quarter. The New York-based company posted a quarterly profit of $119.1 million, or $0.43 per share, versus a year-ago profit of $217.9 million, or $0.77 per share. Excluding special items, the company earned $0.53 per share. During the quarter, Coach recorded charges of $37 million under the Company's multi-year transformation plan. Its sales fell 10% to $1.04 billion from $1.15 billion. Excluding foreign currency impacts, the company's sales declined 9%. However, analysts were expecting earnings of $0.45 per share on revenue of $1.01 billion. North American sales dropped 19% to $634 million, while international sales climbed 4% to $381 million in the quarter. China sales rose 10%, while sales in Japan dropped 7%. Excluding currency impacts, the company's international sales gained 6%. Coach's gross margin narrowed to 68.9% from 71.8%. Victor Luis, Chief Executive Officer of Coach, Inc., said, “Our first quarter results were in line with our expectations and our annual guidance, as continued international growth was offset by our North American handbag business where we have strategically reduced promotional events.” Coach shares rose 2.43% to $37.03 in pre-market trading.