Coach pleased with holiday performance, profit jumps to $906 million
Coach on Tuesday reported its second quarter 2017 results for the period ended on December 31, 2016. The company was very pleased with its holiday performance, "particularly in light of the challenging and volatile global retail environment,” said Victor Luis, Chief Executive Officer of Coach, Inc.
Net sales for the quarter increased 4% to $1.32 billion, with the Coach brand contributing $1.20 billion and the Stuart Weitzman totaling $118 million. The Coach brand increased 2% and Stuart Weitzman increased 26%.
Gross profit increased 5% to $906 million, and net income increased to $200 million, with earnings per diluted share of $0.71, compared to $170 million and $0.61 in the previous year’s comparable period.
North America Coach brand sales increased 2%, with direct sales increasing 5% and aggregate comparable sales increasing 3%. The performance offset the planned North American department store decline of 30%. International brand sales rose 3% driven by positive comparable store sales in Mainland China, and the European business grew at a double-digit rate in total and comparable store sales.
In addition, Stuart Weitzman gross profit increased 26% to $76 million.
Luis added, “We were also thrilled with Stuart Weitzman’s results this quarter as we continued to implement our strategic priorities for the brand. We advanced our leadership position in fashion boots and booties during the key winter selling season, while driving global awareness and brand relevance through impactful marketing and the launch of key global flagships alongside the Coach brand openings on Fifth Avenue in New York and Regent Street in London.”
Coach adjusted its revenue guidance following the performance and now expects an increase in low-single-digits, and the company maintains its double-digit growth expectation for net income and earnings per diluted share.
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