NEW YORK (TheStreet) -- Shares of Coach (COH) were gaining on heavy trading volume early-afternoon Tuesday as the company reported mixed 2017 fiscal first-quarter results, but saw a year-over-year increase in same-store sales.
Before today's market open, Coach said first-quarter same-store sales in North America grew 2.0%, compared with a decrease of 9.5% in the same quarter last year.
Analysts surveyed by FactSet forecast a same-store sales increase in North America of 2.2% for the most recent period.
Stifel analysts believe the continuation of positive comps "remains believable" for Coach's North American business in 2017, according to Barron's.
The firm has a "hold" rating and $38 price target on shares of New York City-based Coach.
"We believe the market is appropriately valuing Coach's turnaround prospects," Stifel said in an analyst note, Barron's reports. "With steady comp and margin gains expected in the near term, and with valuation trending above the historical average, we believe the turnaround story is well understood by the market."
Coach backed its 2017 outlook of revenue increasing by low-to-mid single digits, which Stifel said it expects will drive shares higher.
More than 4.94 million of the company's shares changed hands so far today vs. its average 30-day volume of 3.35 million shares per day.
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