Coach reports 7 percent sales increase for fiscal Q3
Following the annoucements that Creative Director Reed Krakoff and CEO Lew Frankfort are stepping down from their positions at the end of this year, Coach reports a 6 percent increase in net income to US$ 239 million on a 7 percent rise in sales to US$ 1.19 billion for the third quarter ended March 30. This compares with net profits of $225 million on sales of $1.11 billion in the same period a year earlier. For the three months ended March 30, net income rose 6.2 percent to $238.9 million, from $225 million, a year ago. Net sales rose 7.1 to $1.19 billion from $1.1 billion.
Victor Luis, currently President and Chief Commercial Officer, who takes over as CEO of Coach from January 1st 2014 said, “‘Internationally, our business is growing rapidly, with China in particular continuing to post excellent gains, and is now on course to generate about $425 million in sales this year. We’re also pleased to announce that we’ve reached an agreement to purchase our partner’s 50 percent interest in our businesses in the United Kingdom and Europe, with the transaction expected to close in July.’” Luis also noted that the firm’s men’s business remains on track to double to over $600 million this year, up about 50 percent. The brand has a broader men’s offering in over 600 locations globally and across all channels.