NEW YORK, United States — Coach Inc., the largest U.S. luxury handbag maker, posted fourth-quarter profit that topped analysts’ estimates, helped by products sold to men.
Earnings excluding restructuring costs were 59 cents a share in the period ended June 28, New York-based Coach said today in a statement, topping the 53-cent average of estimates compiled by Bloomberg. Sales fell 7 percent to $1.14 billion. Analysts, on average, anticipated $1.1 billion.
Coach has been expanding beyond women’s handbags by adding men’s leather knapsacks, sunglasses and clothing, as well as moving into other categories. Coach also is trying to produce more sophisticated bags and refurbishing its stores to fend off growing competition from rivals such as Michael Kors Holdings Ltd.
The shares jumped 5.5 percent to $36.20 at 7:10 a.m. in New York, before the markets opened. Before today, Coach had slumped 39 percent this year, compared with a 4.9 percent gain for the Standard & Poor’s 500 Index.
By Cotten Timberlake; editors: Nick Turner, Kevin Orland, Cecile Daurat.