Luxury handbag maker Coach has narrowly missed analysts’ estimates for its latest quarter.
Sales rose two per cent at North America stores open at least a year, the first quarterly rise in over three years. The rise was put down to higher online sales.
Analysts on average had expected a 1.8 per cent rise. Net income rose nearly seven-fold to $81.5 million, or 29 cents per share.
The company said it was planning to cut back on discounting and would tighten supply to department stores in an attempt to regain its premium brand status.
“While the sales uplifts may seem somewhat anemic, it is important to note that they are being delivered against the backdrop of a falling number of doors through which Coach sells,” said Neil Saunders of research firm Conlumino.
The company said it expected sales to rise in low to mid single-digit percent in fiscal 2017.