Coach's (NYSE:TPR) third-quarter earnings report showed profit growth for the first time in years. 

In this clip from the Motley Fool Money radio show, Chris Hill, Ron Gross, and Jeff Fischer go over the most important numbers from the report, a few things investors should still be wary of, and a potential bright spot on the horizon.

A transcript follows the video.

This podcast was recorded on April 29, 2016.

Chris Hill: Coach is in the middle of a turnaround. Looks like it's going pretty well, Ron. Third-quarter report showed profit growth for the first time in three years.

Ron Gross: Are you telling me Coach had a sales increase of 13% excluding currency?

Hill: How about that?

Gross: You're right, turnaround continues. Renovating stores, improving the brand, refreshing designs. North America, which has been a disaster, seems to have stabilized. International continues to be the bright spot. EPS, earnings per share, up 25%, includes the Stuart Weitzman acquisition, which helps. Still, things definitely seem to be turning.

They're going to try cut another $65-$80 million of costs to get their operating margins up to 20%. They currently stand at 13%. So, that's a pretty lofty goal. If I was thinking about this stock, I'm not sure I'd give them credit for that entire move. But you probably will see some widening margins. 12 times EBITDA right now. If you believe the turnaround continues, probably not a terrible entry point. For me, I would continue to watch.

Hill: Any sense of how they're going to cut those costs? Is it closing stores, cutting jobs?

Gross: It's staffing, to a large extent.

Jeff Fischer: Good turnaround, but much easier comparisons, yes?

Gross: Absolutely.

Fischer: That'll help Chipotle next year, too. If your company's not doing well, just remember, there's always next year.

Jeff Fischer has no position in any stocks mentioned. Ron Gross has no position in any stocks mentioned. Chris Hill owns shares of Chipotle Mexican Grill. The Motley Fool owns shares of and recommends Chipotle Mexican Grill and 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.