The 10-second takeaway
For the quarter ended March 31 (Q3), Coach met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share increased significantly.
Margins increased across the board.
Coach recorded revenue of $1.11 billion. The 21 analysts polled by S&P Capital IQ expected to see sales of $1.10 billion on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $950.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.77. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.75 per share. GAAP EPS of $0.77 for Q3 were 24% higher than the prior-year quarter's $0.62 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 73.8%, 100 basis points better than the prior-year quarter. Operating margin was 30.4%, 370 basis points better than the prior-year quarter. Net margin was 20.3%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $4.79 billion. The average EPS estimate is $3.52.
The stock has a four-star rating (out of five) at Motley Fool CAPS. Among 807 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 780 give Coach a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Coach is outperform, with an average price target of $77.71.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Coach. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.