NEW YORK — Coach's fiscal second-quarter profit fell as it incurred costs related to its transformation plan. Still, its adjusted profit topped Wall Street's view.
Its stock rose in Thursday premarket trading.
The handbag, accessories and footwear company earned $183.5 million, or 66 cents per share, for the period ended Dec. 27. A year earlier the New York company earned $297.4 million, or $1.06 per share.
The current quarter include $20 million in charges mostly related to renovations, lease termination costs tied to store closures and organizational costs. It also had $4 million in costs related to the pending Stuart Weitzman acquisition.
Removing these items, earnings were 72 cents per share.
The results surpassed Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 65 cents per share.
Shares of the company gained $2.49, or 6.8 percent, to $38.95 about 30 minutes before the market open.
Coach Inc. has been working on transforming its brand to make its business more competitive with fast-growing rivals. The company previously announced plans to close some underperforming stores and it is not providing as deep discounts on some of its merchandise as it has in the past.
Revenue dropped to $1.22 billion from $1.42 billion as North American sales fell 20 percent. Analysts expected slightly higher revenue of $1.23 billion, according to Zacks.
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