COACH reports better-than-expected quarterly sales, sustained by demand in China and Europe
The company said it would cut an unspecified number of jobs and that chief operating officer Gebhard Rainer would leave. Coach is transforming itself by renovating its stores and spending more on reviving its brand.
It is also refreshing styles to target younger customers under designer Stuart Vevers, its new creative head, who has worked with luxury fashion houses such as Louis Vuitton and Marc Jacobs.
COACH has also aggressively cut back on promotions and launched the 1941 Collection a premium line of handbags. Comparable sales for the Coach brand in North America were flat in the third quarter ended March 26, ending a three-year decline in sales. Analysts had expected a decline of 1.4 percent, according to Consensus Metrix.
Total revenue rose 11.2 percent to $1.03 billion.Net income attributable to shareholders rose more than 25 percent to $112.5 million, or 40 cents per share. Excluding items, the company earned 44 cents per share.
Analysts on average had expected earnings of 41 cents per share and revenue of $1.02 billion, according to Thomson Reuters.