Coach (NYSE: COH) reported Q4 EPS of $0.50, $0.01 better than the analyst estimate of $0.49. Revenue for the quarter came in at $1.13 billion versus the consensus estimate of $1.15 billion.

Both North American aggregate and bricks and mortar comparable store sales rose approximately 4%.

Fiscal Year 2018 Outlook

The following fiscal 2018 guidance is provided on a non-GAAP basis and includes projected Kate Spade results subsequent to the closing of the transaction on July 11, 2017.

The company expects revenues for fiscal 2018 to increase about 30% versus fiscal 2017, to $5.8 to $5.9 billion, with low-single digit organic growth and the acquisition of Kate Spade adding over $1.2 billion in revenue.

In addition, the company is projecting operating income growth of 22% to 25% versus fiscal 2017 driven by mid-single digit organic growth, the acquisition of Kate Spade, and estimated synergies of $30-$35 million. These synergies are expected to offset in part the reduction in profitability from the strategic and deliberate pullback of Kate Spade wholesale disposition and online flash sales channels. Taken together, the Kate Spade business and resulting synergies are expected to contribute approximately $130-$140 million to operating income.

Interest expense is expected to be approximately $90 million for the year while the full year fiscal 2018 tax rate is projected at about 25% to 26%.

Overall, the company is projecting earnings per diluted share in the range of $2.35-$2.40, an increase of about 10% to 12% for the year, including low-to-mid- single digit accretion from the acquisition of Kate Spade, consistent with the previously communicated forecast.

(Street sees FY18 EPS of $2.49 on sales of $6.04 billion. )

For earnings history and earnings-related data on Coach (COH) click here.