What happened

Shares of Coach Inc. (NYSE:COH) were down 13.2% as of 1 p.m EDT Tuesday after the luxury fashion company announced mixed fiscal fourth-quarter 2017 results, then followed with disappointing full fiscal-year 2018 guidance.

Coach's revenue in fiscal Q4 declined 1.7% year over year to $1.13 billion, but would have climbed 6% as reported and 7% at constant currency had it not been for an extra week in fiscal year 2016. On the bottom line, adjusted net income climbed to $142 million, or $0.50 per diluted share, up from $126 million, or $0.45 per diluted share in the same year-ago period. Note last year's fiscal fourth quarter included earnings of $0.07 per share related to the additional week.

By comparison, analysts' consensus estimates called for Coach to deliver slightly lower adjusted earnings of $0.49 per share, but on higher revenue of $1.15 billion.

Three Coach purses, one black, one with leather flowers in various shades, and one brown.

Image source: Coach Inc.

So what

Coach CEO Victor Luis called it a "strong" quarter, noting the company not only drove mid-single-digit comparable-store sales growth in North America, but also saw solid growth at its recently acquired Stuart Weitzman brand (with sales up 16% at constant currency excluding the extra week).

In addition, Coach closed on its acquisition of Kate Spade in July -- a move Luis states "will enhance our position in the attractive and growing $80 billion global premium handbag and accessories, footwear and outerwear market."

Now what

Coach anticipates revenue in fiscal year 2018 will climb around 30% year over year, to a range of $5.8 billion to $5.9 billion, assuming low-single-digit organic growth and more than $1.2 billion in sales from Kate Spade. That should result in full-year adjusted earnings per share of $2.35 to $2.40, good for 10% to 12% growth, including a low- to mid-single-digit accretive contribution from Kate Spade.

But Wall Street was expecting Coach to guide for higher fiscal year 2018 adjusted earnings of $2.49 per share on revenue of roughly $6.04 billion.

Of course, Coach might be taking a conservative approach to its outlook given uncertainties surrounding the ongoing integration of Kate Spade. But combined with its slight top-line "miss" to end the fiscal year -- relative to Wall Street's near-term expectations, anyway -- and with shares up around 36% year to date as of Monday's close, it's no surprise to see Coach stock pulling back on Tuesday.

Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Coach. The Motley Fool has a disclosure policy.