Coach Inc. posted better-than-expected results for the fourth quarter, thanks to $43 million in contributions from Stuart Weitzman but still saw profits and sales plunge. Coach acquired the shoe designer from Sycamore Partners in May of this year for $574 million.
Shares of Coach, which has been facing stiff competition from the likes of Tory Burch and Michael Kors, rose more than 3 percent by mid-day trading.
The company said net sales slumped to $1 billion, compared with $1.14 billion in the same period last year.
Net Income: For the fourth quarter, ended June 27, 2015, the company posted $11.7 million in net income, or 4 cents a diluted share, compared with $75.2 million, or 27 cents, a year earlier.
Adjustments: Net income for the quarter totaled $85 million, or EPS of 31 cents, excluding transformation-related charges and acquisition costs.
Net Revenues: Net sales for the quarter totaled $1 billion, down 12 percent year-over-year from $1.14 billion in the comparable quarter.
Hit, Miss or Beat: Coach beat Wall Street’s estimates for both net sales and EPS in Q4. The company posted adjusted EPS of 31 cents, while the Street was expecting 29 cents for the quarter. Analysts polled by Yahoo Finance had predicted net sales of $973 million for the quarter.
Executive Insights: “We are pleased with our fourth quarter and full year progress on the comprehensive plan we laid out a year ago to reinvigorate our brand and business. … As we moved through fiscal 2015, we drove sequential improvement in our North America bricks and mortar business while dramatically reducing the number of promotional impressions in the marketplace against a backdrop of heightened promotional activity,” said Victor Luis, Coach CEO, in a release.