Coach Inc. (COH), the designer handbag maker, came out with fourth-quarter fiscal 2015 results, wherein adjusted earnings of 31 cents surpassed the Zacks Consensus Estimate of 29 cents per share. However, the bottom line fell 47.5% from 59 cents a share earned in the year-ago quarter.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2016 portrays a slight downside in the last 30 days. However, Coach’s performance in the trailing four quarters gives a positive picture. The company has posted positive earnings surprises in all the four quarters.
In the trailing four quarters, including the quarter under review, the company outperformed the Zacks Consensus Estimate by an average of 9.6%.
Revenues: Coach generated net sales of $1,004.1 million that surpassed the Zacks Consensus Estimate of $970.5 million but decreased 11.6% year over year.
Key Events: During the quarter, Coach streamlined its North American operations. Further, the company is focused on transforming its brand through lesser promotional activities. Moreover, the acquisition of luxury footwear brand Stuart Weitzman has accredited the company’s performance and has helped Coach to become a multi-brand company.
Guidance: Taking Coach as a stand-alone brand, management projects low single-digit growth in revenue in constant currency for fiscal 2016, on a 52-week basis. However, including anticipated sales of $335 million in dollar terms from the addition of the Stuart Weitzman brand to its portfolio, revenue is expected to increase in high-single digits and contribute 9 cents a share to the bottom line.
Zacks Rank: Currently, Coach carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Coach’s shares rose over 6% during pre-market trading hours following the earnings release.
Check back later for our full write up on Coach’s earnings report!
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