Tuesday, July 31, 2012

Coach, Inc.(NYSE:COH) misses Street Forecast, Marathon Petroleum (NYSE:MPC ) beats Estimate

Shares in handbag and accessories-maker Coach, Inc.(NYSE:COH) fell more than 15 percent in early hour after the company reported revenue growth that did not meet analyst expectations.

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Buoyed by strong demand in China, the company's revenues rose 13 percent to $1.16 billion in the June quarter, but it was short of the $1.2 billion that the Street had estimated.

Its shares were trading at under $8 dollar before the market opened.

Sales in China were offset by low demand in North America, where consumer sentiment has been hit following the long-drawn economic recovery in the United States, the world's largest consumer market.

Revenue growth of same-store sales in China was double of that in North America. The company has introduced increased discount coupons but said that this strategy would not impact sales as it had enough room to manoeuvre in its pricing strategy.

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In the June quarter, net income rose 24 percent to $251.4 million, or 86 cents per share, from $202.5 million, or 68 cents per share, a year earlier.

Marathon Petroleum Corp(NYSE:MPC ) fared better on the Street with a forecast-beating performance. It reported a June quarter net profit of $814 million or $2.38 a share, up from $802 million or $2.24 a share in the year-ago period.

Revenues rose to $20.3 billion from $20.8 billion a year earlier.

Its gross refining margin rose to $11.13 a barrel in the second quarter from $10.78 a barrel a year earlier.

Marathon's shares were trading up 0.3 percent at $47.60 on the Nasdaq.

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