Coach Jumps on Strong U.S. Holiday Sales

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Coach (COH) issued a strong earnings report Tuesday morning, beating earnings expectations and showing solid growth in North America during the holiday season. Shares rose 6% in morning trading.

Coach posted $1.18 in EPS, three cents ahead of analysts’ expectations. Revenue was also slightly above estimates. Same-store sales rose 8.8% in North America and rose by double-digits in China. Sales in Japan were flat after excluding currency effects. Gross margin slipped to 72.2% from 72.4%.

“We were especially pleased with our ongoing strength in North America during the holiday season, as total revenues rose 15%,” said Chairman and CEO Lew Frankfort in a statement. “This growth indicates that we are continuing to increase our share of an expanding U.S. accessories market.”

“[T]he company continues to gets its inventory in line to its sales growth run rate,” wrote retail analyst Brian Sozzi, chief strategist for NBG Productions.



Original Article Source by Barrons.com