NEW YORK, United States — Coach Inc., the maker of luxury handbags, posted fourth-quarter profit that exceeded analysts’ estimates as new products boosted sales.
Profit was 45 cents a share, excluding some items, in the quarter ended July 2, the New York-based company said in a statement Tuesday. Analysts projected 41 cents, on average. Sales rose 15 percent to $1.15 billion, in line with analysts’ $1.16 billion average estimate.
Coach has been introducing new items and designs, remodeling stores and stepping up its marketing as part of a plan to revive its brand cachet, which had been hurt by heavy discounting in recent years. The company also is aiming to win market share from newer rivals like Michael Kors Holdings Ltd. and Kate Spade & Co.
Shares of Coach rose 3.7 percent to $43 at 6:55 a.m. in early trading in New York. The stock increased 27 percent this year through Monday.
By Stephanie Wong; editors: Kevin Orland and Tony Robinson.