Shares Of Coach Spike 5% Following Q2 Print, Full-Year Guidance

by Jayson Derrick

January 26, 2016 8:59 AM | 2 min read | Make a Comment

Shares of

Coach Inc

COH

were trading higher by more than 5 percent at $31.95 as investors and traders were encouraged by the company's

second quarter results and full-year outlook. Coach said that it earned $0.68 per share on revenue of $1.27 billion during the second quarter. Wall Street analysts were expecting the company to earn $0.67 per share on revenue of $1.28 billion. Sales during Coach's second quarter rose 4 percent from the same quarter a year ago and 7 percent on a constant currency basis. Total North American sales fell 7 percent from a year ago to $731 million while International sales rose 4 percent to $437 million over the same time period. Gross profit for the quarter rose to $859 million from $841 million in the same quarter a year ago while net income totaled $188 million and included a $13 million contribution from the Stuart Weitzman brand. This marked a decrease compared to non-GAAP net income in the second quarter a year ago of $200 million. "And, as our momentum builds, we are targeting a return to growth for the Coach brand with continued improvement in comparable store sales, while Stuart Weitzman also drives top and bottom line results," Victor Luis, Chief Executive Officer of Coach, Inc., said. "We have a clear vision, a well-articulated strategy and a proven track record of execution. We remain confident that we can drive sustainable growth and best-in-class profitability for Coach, Inc., over the long term," Mr. Luis concluded." Looking forward to the full fiscal year 2016, Coach expects its sales to increase by a low-single digit on a constant currency basis. However, the company noted that based on current exchange rates, its overall full-year revenue growth will be impacted by 225 to 250 basis points.

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Posted In: Earnings News apparel stocks Coach Fashion Stocks Stuart Weitzman Victor Luis

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