Coach Earnings: Solid Double-Digit Revenue Quarter

S&P 500 (NYSE:SPY) component Coach Inc. (NYSE:COH) reported its results for the first quarter. Coach is an American marketer of accessories and gifts, including handbags, footwear, sunwear, travel bags, business cases, jewelry, clothing, fragrance, and watches.

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Coach Inc. Earnings Cheat Sheet

Results: Net income for the textile-apparel rose to $221 million (77 cents per share) vs. $215 million (73 cents per share) in the same quarter a year earlier. This marks a rise of 2.8% from the year-earlier quarter.

Revenue: Rose 10.4% to $1.16 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Coach Inc. fell short of the mean analyst estimate of 85 cents per share. It fell short of the average revenue estimate of $1.2 billion.

Quoting Management: Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, “We were pleased with our results this quarter, highlighted by double-digit top line growth, with strong comparable stores sales – most notably in North America and China. We continued to make progress against our strategic initiatives – enhancing our leadership position in the North American women’s bag and accessory category through fashion innovation, aggressively growing our international business, becoming a market leader in the Men’s accessories category and harnessing the power of the digital world. In addition, during the quarter, we completed the acquisition of our domestic distributors in Korea and Malaysia.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 13.8%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 16.6% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose 24.2% and in the third quarter of the last fiscal year, the figure rose 21%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by 2 cents, and in the third quarter of the last fiscal year, it was ahead by 3 cents.

Looking Forward: The average estimate for the second quarter remains unchanged at 86 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $3.51 per to share to $3.53.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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