Classic American accessories retailer Coach, Inc. (COH: Quote) Wednesday reported a higher second-quarter profit, as sales increased 4 percent, led by international growth. Meanwhile, quarterly earnings and net sales missed analysts’ expectations, due to a ‘disappointing’ performance in North America. In pre-market trading, the shares are down about 16 percent.
Lew Frankfort, chairman and chief executive officer of the company stated, “During the holiday quarter we drove modest growth and continued to gain overall traction on our key strategies…However, we were disappointed by our performance in North America, where the holiday season proved challenging.”
However, the company said it is confident of addressing the near-term challenges in North America. Coach also said that its international growth remained strong, led by China, which is on course to generate at least $400 million in sales this year.
In the second quarter, the company’s net income increased to $352.76 million or $1.23 per share from $347.50 million or $1.18 per share last year.
On average, 31 analysts polled by Thomson Reuters expected the company to earn $1.28 per share for the quarter. Analysts’ estimates typically exclude special items.
Net sales increased 4 percent to $1.50 billion, but was below analysts’ estimate of $1.60 billion. On a constant currency basis, sales growth was 5 percent.
During the second fiscal quarter, the company repurchased about four million shares of its common stock at an average cost of $56.63, spending a total of $225 million.
COH closed Tuesday’s regular trading at $60.68 on the NYSE. In the pre-market activity, the share are down 16.12 percent.
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by RTT Staff Writer
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