Coach profit up on Japan, U.S. factory stores
NEW YORK |
NEW YORK (Reuters) - Handbag maker Coach Inc (COH.N) posted higher quarterly profit on Wednesday, helped by strong gains in Japan and at its U.S. factory stores, but trimmed its full-year sales outlook amid economic uncertainty.
Net income was $252.3 million, or 69 cents per share, for the quarter that ended December 29, up from $227.5 million, or 61 cents per share, a year ago.
Analysts on average had been expecting 68 cents per share, according to Reuters Estimates, based on the company's prior forecast for profit of 68 cents per share on sales of about $970 million.
Net sales for the quarter rose to $978.0 million from $805.6 million a year ago. Sales at North American stores open at least a year rose 7 percent, as a 17.7 percent increase at factory stores offset a 1.1 percent decline at full-priced stores.
"North American comparable store sales were impacted by weak mall traffic and an unexpected decline in average transaction size, as the macro environment appeared to cause a shift by many consumers to lower price point items," Chief Executive Lew Frankfort said in a statement.
The company affirmed its earnings outlook for fiscal 2008, saying it still expects to earn $2.06 per share, but now forecast full-year sales of "at least $3.15 billion," compared with its prior forecast for sales of $3.17 billion.
The company also said it would not offer same-store sales guidance for the second half of the fiscal year "in light of the continued uncertainty in the retail backdrop."
(Reporting by Martinne Geller; Editing by Maureen Bavdek)
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