Coach Beats Earnings on Strong China Sales, Hikes Dividend
Coach reported higher-than-expected quarterly results and raised its annual dividend, sending shares of the upscale leather goods maker sharply higher.
The new dividend of $1.35 per share is 13 percent higher than its previous payout, the company said.
Coach, which sells handbags for as much as $1,200, is expanding into Asia as it shifts from a maturing U.S. market that recorded a 2 percent decline in same-store sales during the important holiday season quarter.
However, in the latest quarter to March, the company reported a 1 percent rise in same-store sales in North America. Overall sales in the region, including online sales, rose 7 percent.
International sales rose 6 percent to $382 million in the quarter, driven by a 40 percent rise in sales in China.
Overall revenue rose 7 percent to $1.19 billion in the third quarter, beating the average analyst forecast of $1.18 billion, according to Thomson Reuters I/B/E/S.
Net income rose to $239 million, or 84 cents per share, for the quarter ended March 30 from $225 million, or 77 cents per share, a year earlier.
Analysts on average expected the company to report per share earnings of 80 cents.