GO
Loading...

Enter multiple symbols separated by commas

Coach Third-Quarter Profit Rises on New Products

Handbag and accessories maker Coach said Tuesday that quarterly profit rose 38%, helped by new handbag styles and the launch of a fragrance.

Coach, which also sells handbags, accessories, travel products and shoes, posted net income of $150 million, or 40 cents per share, for its fiscal third quarter, ended March 31, compared with $108.8 million, or 28 cents per share, a year ago.

The company earned 39 cents per share, excluding discontinued operations, The average Wall Street estimate was 38 cents, excluding items, as compiled by Reuters Estimates.

New York-based Coach said total net sales rose 30% to $625.3 million, while sales at U.S. stores stores open at least a year, a key retail metric known as same-store sales, increased 20%. Same-store sales climbed 15% at retail stores and nearly 27% at factory stores.

On a continuing operations basis, Coach, which has evolved from a leather goods manufacturer to a hip fashion brand, forecast full-year earnings per share of $1.67 on sales of at least $2.6 billion.

Coach said that forecast compared with a Wall Street estimate of $1.72 per share, which it estimates includes a 10 cent contribution from discontinued operations.

The company said that forecast implied earnings per share of 40 cents for the fiscal fourth quarter on sales of $640 million.

For fiscal 2008 on a continuing basis, Coach forecast earnings per share of at least $2.02 and sales of at least $3.1 billion.

Coach's stock has more than doubled since hitting a yearly low in July, reaching all-time highs along the way. It currently trades at about 30 times earnings estimates for the current fiscal year, a premium to its peers on the Standard & Poor's Consumer Discretionary Sector Index , which has an average price-to-earning multiple of 18.6.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.