Coach Inc. profits drop 24,4% in fiscal Q4
Coach Inc. reported today net sales of $1.14 billion for its fourth fiscal quarter ended June 28, 2014, compared with $1.22 billion reported in the same period last year, a decrease of 7%. On a constant currency basis, total sales declined 6% for the period. Net profits fell by 24.4% to 781 million dollars (584 million euros).
Coach sales in China sales increased by 20 percent in the quarter compared to the same period a year ago, helped by double-digit growth in comparable store sales. For the year, China sales jumped by 25 percent to US$545 million, accounting for about 10 percent of total sales. By comparison, sales in North America fell by 16%, to 691 million dollars.
Victor Luis, CEO of Coach, Inc. said, “The fourth quarter capped a challenging year for the company, most notably in the North America women’s bag and accessory business. However, it was also a year of many accomplishments for Coach, including the successful integration of our retail businesses in Europe, surpassing $500 million in sales in China, and driving Men’s to about $700million in sales globally. Most importantly, we laid the groundwork for our brand transformation. A crucial milestone was the arrival of Executive Creative Director Stuart Vevers last September, who has already had a significant impact on the creative direction of the brand. We also developed our new retail concept, inspired by our New York City heritage, using an iconic materials palette that is distinctively Coach.”
Coach recently unveiled its first shoes men’s collection, comprising of 15 models, which will be avaialable in stores from September.