Ahead Of Coach's Q2 Results

(RTTNews) - Lifestyle and multi-brand company Coach Inc. (COH) sees significant growth opportunities for the Stuart Weitzman and Coach brands. Also, the company continues to believe that fiscal 2016 will be another year of very strong growth with sales growing to about $125 million.

Coach maintained its fiscal 2016 outlook outlined in August. Coach brand revenues for the year are expected to increase by low-single digits in constant currency on a 52-week basis.

The company is scheduled to release its second-quarter results before the bell on Tuesday, January 26, with analysts projecting earnings of $0.66 per share on revenue of $1.28 billion for the quarter.

In the previous quarter...

The company's GAAP net income was $96 million or $0.35 per share compared to $119 million or $0.43 per share in the prior year period.

Non-GAAP net income for the first quarter was $113 million or $0.41 per share compared to $146 million or $0.53 per share last year. On average, 34 analysts polled by Thomson Reuters expected earnings of $0.40 per share. Analysts' estimates typically exclude certain special items.

Net sales totaled $1.03 billion for the first fiscal quarter, compared with $1.04 billion reported in the same period of the prior year, a decrease of 1%. On a constant currency basis, total sales increased 3% for the period. Analysts expected sales of $1.04 billion.

Victor Luis, Chief Executive Officer of Coach, said, "...Our international businesses posted moderate growth on a constant currency basis, highlighted by double-digit increases in Europe and Mainland China, as well as sales gains in Japan. Overall, our results underscore our confidence that the cumulative impact of our actions will result in a return to top line growth in FY16 and positive North American comps by the end of the year."