Coach Q2 Profit Down, Sales Up; Maintains Outlook - Quick Facts

(RTTNews) - Coach Inc. (COH), a design house of modern luxury accessories and lifestyle brands, Tuesday reported that its second-quarter net income was $170.1 million or $0.61 per share including a contribution of $12 million or $0.04 per share from Stuart Weitzman. This is compared to prior year net income of $183.5 million or $0.66 per share.

Adjusted net income totaled $188 million or $0.68 per share, compared to $200 million or $0.72 per share last year.

Net sales increased 4 percent to $1.27 billion for the second quarter from $1.22 billion a year ago. On a constant currency basis, total sales increased 7% for the period.

Net sales for the Coach brand totaled $1.18 billion, a decrease of 3%. On a constant currency basis, total sales decreased 1% for the period.

Looking ahead, the company maintained its fiscal 2016 constant currency revenue growth and operating margin guidance for the Coach brand, while raising its consolidated operating income outlook based on second quarter results.

Coach brand revenues for Fiscal 2016 are still expected to increase by low-single digits in constant currency on a 52-week basis. However, based on current exchange rates, foreign currency is now expected to negatively impact overall Fiscal 2016 revenue growth by 225-250 basis points.