Watch CBSN Live

Coach bags better-than-expected profit

NEW YORK - Coach's (COH) fiscal fourth-quarter net income declined 66 percent, pulled down in part by charges tied to store closings.

Still, the luxury handbag maker's adjusted profit and revenue beat analysts' estimates. Its stock rose in Tuesday premarket trading.

Coach - which also sells clothing, footwear and accessories - earned $75.3 million, or 27 cents per share, for the period ended June 28. A year earlier it earned $221.3 million, or 78 cents per share.

Excluding charges related to store closings and other items, earnings were 59 cents per share. Analysts polled by FactSet anticipated earnings of 53 cents per share.

Shares of Coach gained $1.19, or 3.5 percent, to $35.50 in premarket trading about 35 minutes before the market open.

The company previously announced that it is planning to close about 70 underperforming stores in fiscal 2015 as it tries to make its business more competitive with fast-growing rivals.

Revenue fell 7 percent to $1.14 billion from $1.22 billion, but managed to top Wall Street's forecast of $1.1 billion.

International sales climbed 7 percent, while North American sales declined 11 percent.

"The fourth quarter capped a challenging year for the company, most notably in the North America women's bag and accessory business. However, it was also a year of many accomplishments for Coach, including the successful integration of our retail businesses in Europe, surpassing $500 million in sales in China, and driving Men's to about $700 million in sales globally," CEO Victor Luis said in a press release.

For the year, Coach Inc. earned $781.3 million, or $2.79 per share, compared with $1.03 billion, or $3.61 per share, in the previous year. Adjusted profit was $3.10 per share.

Annual revenue dropped 5 percent to $4.81 billion from $5.08 billion.

View CBS News In