Coach Reports Mixed Results For Q1

Coach Inc COH reported mixed results for the first quarter. While adjusted EPS came in line, revenue fell shy of expectations. The company maintained its fiscal year 2017 outlook.

• Reports 10 increase in adjusted EPS to $0.45, in line with the estimates.
• Net sales grew one percent to $1.04 billion, missing expectations by $0.03 billion.
• Comparable store sales advanced 2 percent in North America.
• Continues to see revenue growth of low-to-mid single digits in fiscal year 2017.

CEO Victor Luis said, "We are pleased with our performance in the quarter, highlighted by continued positive comparable store sales in North America and growth internationally. We remained focused on elevating the perception of the Coach brand through compelling product, differentiated store environments and emotional marketing. At the same time, we implemented the strategic actions necessary to reposition the brand and streamline our distribution in the promotional North American department store channel. Despite this deliberate pullback, we achieved growth across key financials, including sales, gross profit and operating income, as well as double-digit earnings growth."

In the pre-market session, the stock traded up by 3.09 percent to $37.00.