US: Coach "disappointed" with Q2 profit rise
- Q2 profit climbed 1.7% to $353m
- Sales up 4% to $1.50bn
- CEO "disappointed" with performance in North America
The New-York based retailer was it was "disappointed" with its performance in North America
Footwear, handbags and accessories retailer Coach Inc has said it is "disappointed" with its second-quarter results after a tough holiday season weighed on sales in North America.
Net income climbed 1.7% to US$353m for the quarter to 29 December against $347m the year before.
Sales rose 4% to $1.50bn, compared to $1.45bn the same period the prior year. On a constant currency basis sales were up 5%.
The New-York based retailer said gross margin remained strong at 72.2%, flat with the prior year.
CEO and chairman Lew Frankfort said: "During the holiday quarter we drove modest growth and continued to gain overall traction on our key strategies. We posted strong international results, leveraged the men's opportunity globally and strengthened our digital capabilities.
"However, we were disappointed by our performance in North America, where the holiday season proved challenging.
"Most broadly, the consumer was impacted by a muted macroeconomic environment, while in the women's handbag category competition intensified and promotional activity increased. Importantly, we maintained our pricing strategies despite the retail climate, protecting our brand proposition."
International growth was led by China, which is on track to generate at least $400m in sales this year.
For the half year, net income reached $574m, up 2% on $562m the year before. Net sales increased 7% to $2.67bn against $2.50bn the prior year.
"Looking ahead, we're confident in our ability to address the near-term challenges in North America while leveraging the global opportunity, as we continue to evolve the Coach brand," Frankfort added.
Teen apparel retailer Delia's has tapped Coach Inc executive Whitney Randall as its new vice president and general merchandise manager....
New York-based upscale footwear, handbag and accessories retailer Coach Inc has named Stuart Vevers as its new executive creative director....
Upscale footwear, handbag and accessories retailer Coach Inc is pursuing a takeover of rival luxury company Tory Burch, reports say....
Wedding dress retailer David's Bridal Inc has appointed Pamela Wallack, the head of Gap's Global Creative Center in New York, as its new chief executive officer....
- Speed to market key to Adidas 2020 growth plan
- GAFTI gears up for change in apparel auditing
- SuperGroup to adapt sourcing model for speed
- Apparel software trends 2015: What else to watch?
- Fast Retailing ramps up sustainability efforts
- Transparency call for German apparel firms
- Strike at Adidas and Nike shoe factory in Vietnam
- Myanmar garments to benefit from export strategy
- H&M and Kering trial recycling technology
- Lululemon Athletica on “strong growth” track
- Global market review of workwear - forecasts to 2019
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Outdoor performance apparel: peaks, valleys, and green fields
- Apparel Retail: Top 5 Emerging Markets Industry Guide