NEW YORK, United States — Coach Inc., the largest U.S. luxury-handbag maker, posted second-quarter profit that topped estimates and raised its full-year earnings outlook after new designs boosted sales.
Profit excluding some items was 68 cents a share, the New York-based company said in a statement Tuesday. Analysts estimated 66 cents, on average.
New designs and updated stores are winning customers back to Coach. The retailer had suffered from increased competition from designers like Kate Spade & Co. and Michael Kors Holdings Ltd. The improvements have allowed Coach to reduce its dependence on discounts that hurt profit margins.
Net income fell 5.9 percent to $188.4 million, excluding items. Sales gained 4 percent to $1.27 billion in the quarter, meeting analysts’ projections.
Coach didn’t specify the amount by which it is raising its outlook for operating income. The company maintained its forecasts for sales and operating margin at the Coach brand.
The shares fell 6.4 percent to $30.35 on Monday in New York. They slipped 13 percent in 2015.
By Lindsey Rupp; editors: Nick Turner, Mark Schoifet.