COACH 2017 Q2 profit increased 5% to $906 million
Coach on Tuesday reported its second quarter 2017 results for the period ended on December 31, 2016. 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.
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.