Why Coach Inc. Stock Plunged Today

Shares of Coach Inc. (NYSE: COH) were down 13.2% as of 1 p.m EDT Tuesday after the luxury fashion company announced mixed fiscal fourth-quarter 2017 results, then followed with disappointing full fiscal-year 2018 guidance.

Coach's revenue in fiscal Q4 declined 1.7% year over year to $1.13 billion, but would have climbed 6% as reported and 7% at constant currency had it not been for an extra week in fiscal year 2016. On the bottom line, adjusted net income climbed to $142 million, or $0.50 per diluted share, up from $126 million, or $0.45 per diluted share in the same year-ago period. Note last year's fiscal fourth quarter included earnings of $0.07 per share related to the additional week.

By comparison, analysts' consensus estimates called for Coach to deliver slightly lower adjusted earnings of $0.49 per share, but on higher revenue of $1.15 billion.

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Source: Fool.com