NEW YORK – Shares in Coach Inc. rose more than 3 percent after the luxury handbag maker reported strong international growth and profit that beat Wall Street estimates after it announced store closings last quarter.
The company said in August that it would close 25 percent of its weaker locations within department stores in the next year and planned fewer promotions and sales. Coach credited that trimming in part for its first-quarter profit of $117.4 million, a 21 percent improvement over the $96 million for the same period last year.
International sales rose 7 percent to $395 million, the company reported.
The New York-based company said it had profit of 42 cents per share, 20 percent better than last year's first quarter profit of 35 cents per share. Earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, came to 45 cents per share, up 10 percent over last year's first quarter of 41 cents a share.
The results topped Wall Street expectations. The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of 44 cents per share.
The company posted revenue of $1.04 billion in the period, which fell short of Street forecasts. Ten analysts surveyed by Zacks expected $1.06 billion. The company's revenue for the same period last year was $1.03 billion.
The Company said it is maintaining the fiscal 2017 outlook it released in August.
Coach shares rose about 3 percent in morning trading, to $37 per share, and have risen about 13 percent since the beginning of the year. The stock has increased about 18 percent in the last 12 months.
This story was generated in part by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on COH at https://www.zacks.com/ap/COH
Keywords: Coach, Earnings Report