NEW YORK — Coach's fiscal third-quarter revenue fell, pressured by a strong dollar. A key sales metric also declined in North America as the luxury handbag and accessories maker reduced the amount of online outlet sales it held.
Shares dropped more than 7 percent in Tuesday premarket trading.
Coach's revenue fell to $929.3 million from $1.1 billion a year ago, falling short of Wall Street forecasts. Fourteen analysts surveyed by Zacks Investment Research expected higher revenue of $951.6 million.
The chain said that its revenue would have been 3 percent higher, excluding the impact of the strong dollar.
A strong dollar can hurt companies that do business overseas because sales in other countries translate back into fewer dollars.
In North America, sales at stores open at least a year fell 23 percent. This figure is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Coach Inc. earned $88.1 million, or 32 cents per share, for the period ended March 28. That compares with $190.7 million, or 68 cents per share, a year earlier.
Earnings, adjusted for non-recurring costs, were 36 cents per share.
The New York company's results surpassed Wall Street expectations. The average estimate of 18 analysts surveyed by Zacks was for earnings of 35 cents per share.
The stock declined $3.03, or 7.2 percent, to $39.30 in premarket trading about an hour and a half before the market open.
Elements of this story were 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