NEW YORK (TheStreet) -- Coach (COH) stock is higher by 5.84% to $32.09 in early morning trading on Tuesday, following the release of the company's financial results for the fiscal 2016 first quarter. 

The New York City-based luxury apparel brand reported earnings of 41 cents per share, down from 53 cents per share for the year ago period. 

Revenue declined by 0.8% year over year, to $1.03 billion from $1.04 billion in the fiscal 2015 first quarter. The drop in revenue is the smallest the company has reported in more than two years, according to Bloomberg. 

Coach had been forecast to report earnings of 39 cents per share on revenue of $1.04 billion for the most recent quarter.

The company has been creating new products and updating stores in an attempt to win back customers from competitors such as Kate Spade (KATE), Bloomberg notes. Such changes lower the company's reliance on discounts that often cut into profit. 

"We are pleased with our first quarter performance, which was consistent with our plan and reflected continued progress on our transformation journey," CEO Victor Luis said in a statement.

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Separately, TheStreet Ratings team rates COACH INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate COACH INC (COH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

You can view the full analysis from the report here: COH

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