Coach Beats Q4 Views, Shares Jump

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Shares of
Coach Inc
COH
jumped more than 6 percent in pre-market trading after the company reported stronger-than-expected results for its fiscal fourth quarter. The New York-based company posted quarterly net income of $11.7 million, or $0.04 per share, versus $75.2 million, or $0.27 per share, in the year-ago quarter. Excluding items, the company's earnings came in at $0.31 per share. Its sales declined to $1.00 billion from $1.14 billion. However, analysts were expecting earnings of $0.29 per share on revenue of $973 million. The average estimate among 29 Estimize users was for earnings of $0.28 per share and revenue of $966.651 million. Total North American sales slipped 20 percent to $556 million in the quarter, while international sales fell 5 percent to $392 million. North America same-store sales dropped 19 percent in the quarter. On a non-GAAP basis, the company's operating income fell to $126 million from $231 million, while operating margin shrank to 12.6 percent from 20.4 percent. Coach's board declared a quarterly cash dividend of $0.3375 per common share. Victor Luis, Chief Executive Officer of Coach, Inc., said, "We are pleased with our fourth quarter and full year progress on the comprehensive plan we laid out a year ago to reinvigorate our brand and business. Our execution of these strategic initiatives and resulting performance has been consistent with our expectations and underscores our confidence in the path we've chosen." Coach now projects FY16 stand-alone brand revenue to gain by low-single digits in constant currency. Coach shares gained 6.80 percent to $32.50 in pre-market trading.
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Posted In: EarningsNewsGuidanceprofit
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