Coach Beats Q4 Views

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.

Company has received recommendation from many analysts. In the latest statement by the brokerage house, Buckingham Research upgrades its outlook on Coach. The current rating of the shares is Neutral, according to the research report released by the firm. Previously, the company had a rating of Underperform. The brokerage firm lowers the price target from $32 per share to $30 per share. The rating by the firm was issued on July 23, 2015.

Coach is a marketer of accessories and gifts for women and men. The Company offers a range of modern, fashionable handbags and accessories. Its product offerings include womens and mens bags, accessories, footwear, wearables, jewelry, travel bags, sunwear, watches and fragrance. The Company operates in two segments: North America, which includes sales to North American consumers through Company-operated stores, including the Internet, and sales to wholesale customers and distributors and International, which includes sales to consumers through Company-operated stores in Japan and mainland China, including the Internet, Hong Kong, Macau, Singapore, Taiwan, Malaysia and Korea and sales to wholesale customers and distributors in 25 countries.

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