Coach, Inc. Earnings Cheat Sheet: Profitable Quarter Accelerates Growth

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

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Coach Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the footwear and apparel company rose to $202.5 million (68 cents per share) vs. $195.5 million (64 cents per share) in the same quarter a year earlier. This marks a rise of 3.6% from the year earlier quarter.

Revenue: Rose 8.5% to $1.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: COH beat the mean analyst estimate of 65 cents per share. It beat the average revenue estimate of $1.01 billion.

Quoting Management: Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, “I’m extremely pleased with our fiscal fourth quarter and full year results. We’re continuing to drive sales through higher productivity and distribution expansion, globally. In North America, where revenues grew 17% for the quarter and the fiscal year on a comparable basis, we are increasing our share of a growing accessories market. At the same time, the contribution of our international businesses in China and other East Asian markets is accelerating. Our strong performance also reflects the success of our renewed focus on Men’s – drawing on our long heritage in the category – and our digital strategies, as we continue to build the foundation for strong top and bottom line results in the years ahead.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 18% and in the second quarter, the figure rose 25.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the third quarter, by 3 cents in the second quarter, and by 8 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 14.5% to $950.7 million in the third quarter. The figure rose 18.7% in the second quarter from the year earlier and climbed 19.7% in the first quarter from the year-ago quarter.

Competitors to Watch: Frederick’s of Hollywood Group Inc. (AMEX:FOH), Vera Bradley, Inc. (NASDAQ:VRA), Fossil, Inc. (NASDAQ:FOSL), Tiffany & Co. (NYSE:TIF), Piquadro S.p.A. (NYSE:PQ), Liz Claiborne, Inc. (NYSE:LIZ), Guess?, Inc. (NYSE:GES), Polo Ralph Lauren Corp. (NYSE:RL), VGO Corporation Ltd. (E09), and Voir Holdings Bhd (VOIR).

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(Source: Xignite Financials)