Earnings were 41 cents a share, excluding some items, the New York-based company said in a statement Tuesday. Analysts estimated 40 cents, on average.
Chief Executive Officer Victor Luis is working to win back customers who have increasingly shifted to competing designers like Kate Spade & Co. by adding new products, updating stores and reducing discounts. In an effort to catch more shoppers’ attention, Coach also has boosted marketing to highlight its 75th anniversary this year.
Net income fell 19 percent to $96.4 million. Sales dropped 0.8 percent to $1.03 billion in the quarter, missing analysts’ $1.04 billion projection.
The shares rose 0.6 percent to $30.32 on Monday in New York. The stock has slipped 19 percent this year, dragged down by concerns about the company’s turnaround plan and the broader market for handbags.
By Christie Boyden, Lindsey Rupp; editors: Nick Turner, Kevin Orland, Paul Jarvis.