NEW YORK — Coach said Tuesday that its profit and sales fell in its fourth quarter, but its results still beat Wall Street expectations.
Its shares rose more than 6 percent in morning trading.
The luxury retailer has been updating stores and designs for its leather handbags to combat falling sales and increasing competition. It expanded into other brands earlier this year when it bought footwear company Stuart Weitzman for $530 million.
Coach said adding Stuart Weitzman helped boost earnings and revenue in the quarter and is expected to boost future growth. Coach expects revenue for the year to grow in the low-single digits. Analysts expected revenue to rise less than 1 percent, according to FactSet.
The New York company reported fiscal fourth-quarter earnings of $11.7 million, or 4 cents per share, compared to $75.2 million, or 27 cents per share, a year ago.
Earnings, adjusted for non-recurring costs and costs related to mergers and acquisitions, came to 31 cents per share, exceeded Wall Street expectations. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of 29 cents per share.
Revenue fell 12 percent to $1 billion, but topped Street forecasts. Nine analysts surveyed by Zacks expected $970.5 million.
For the year, the company reported profit of $402.4 million, or $1.45 per share. Revenue was reported as $4.19 billion.
Coach Inc. shares rose $1.97, or 6.6 percent, to $32.40 in early morning trading Tuesday. Its shares are down 5.3 percent in the past 12 months.
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