Coach (COH) Gains Nearly 10% Following Solid Results; Moves Above 200 Day MA

Coach (NYSE: COH) is up sharply following earnings this morning and shares just crossed above its 200 day moving average, an important technical signal. Shares are up 9.9% to $33.34 at last check.

Coach reported Q2 EPS of $0.68, $0.01 better than the analyst estimate of $0.67. Revenue for the quarter came in at $1.27 billion versus the consensus estimate of $1.28 billion. The company also boosted its FY16 Op. Income outlook.

Piper Jaffray analyst Erinn Murphy said the results show evidence of steady progress on the turnaround.

More important that EPS was North American retail comp came in at down 3% excluding a 1% headwind from the reduction of eOutlet activity, Murphy said. Taken together, comps were down 4%--essentially in line with our down 4.2% estimate, she said. Q2 showed solid improvement from the negative 9.5% run rate in Q1. From an outlook perspective, incorporating the Q2 beat and Stuart Weitzman now likely to yield $0.12 (vs. $0.09) of accretion, estimates likely move up, the analyst said.

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