Net sales rose 9% year over year to $1.88 billion, or 8% on a constant-currency basis. Reported sales of $1.876 billion matched estimates.
Adjusted earnings per share increased 28% to $1.32, beating the $1.28 estimate. GAAP diluted earnings were $1.68 per share, compared with a loss of $2.49 per share a year earlier.
Investors weighed the softer sales outlook and continued weakness at Kate Spade against the earnings beat and strong growth at Coach.
Coach Drives Growth as Margins Expand
Adjusted gross margin increased 180 basis points to 78.1%. Operational improvements contributed 170 basis points, while the Stuart Weitzman divestiture added 60 basis points. Tariffs and duties reduced the margin by 60 basis points.
