NEW YORK — Coach Inc. on Tuesday reported a drop in fiscal second-quarter profit as higher costs cut into an uptick in sales.
But, the earnings results still topped Wall Street expectations, giving shares a boost. Shares of Coach rose $2.73, or 9 percent, to $33.08 in midday trading.
The luxury handbag maker reported a 7.3 percent drop in profit to $170.1 million, or 61 cents per share. Earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, were 68 cents per share.
The results topped Wall Street expectations. The average estimate of 15 analysts surveyed by Zacks Investment Research was for earnings of 65 cents per share.
The New York-based company reported a 4.5 percent boost in revenue to $1.27 billion in the period, which missed Street forecasts. Eleven analysts surveyed by Zacks expected $1.3 billion.
Coach brand sales actually fell 3 percent to $1.18 billion. But, luxury shoe brand Stuart Weitzman contributed $94 million in revenue. Coach bought the company last year.
Coach shares have fallen slightly more than 7 percent since the beginning of the year, while the Standard & Poor's 500 index has declined 8 percent. The stock has decreased 19 percent in the last 12 months.
Elements of this story were was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on COH at http://www.zacks.com/ap/COH
Keywords: Coach, Earnings Report