US: Coach Q3 earnings tumble on accessory weakness
- Q3 earnings down to $191m
- Gross margin narrowed 71.1%
- Sales fall 7%
Coach Inc saw both earnings and sales slide in its third-quarter as weakness in its North America accessories division offset strong growth in men's footwear and robust growth in Asia and Europe.
The US footwear, handbags and accessories retailer reported earnings of US$191m in the three months ended 29 March. This compared to earnings of $239m a year earlier.
Gross margin narrowed to 71.1% versus 74.1% in the prior year period, while sales fell 7% to $1.10bn.
CEO Victor Luis, said: "Our business in North America remained challenging in the period, exacerbated by the weather and shift of the Easter holiday. We experienced sharply lower traffic levels in our stores while our internet results were impacted by our strategic decisions to eliminate third party events, as well as limit the access and invitations to our factory flash site.
"At the same time, China results remained resilient with total sales growing over 25% and comparable store sales rising at a double-digit rate. Importantly, we continued to advance our transformation initiatives across all consumer touchpoints, including our first ever New York Fashion Week presentation in February."
Sycamore Partners, the owner of Stuart Weitzman Holdings, has declined to comment on reports it has been working on a deal for a sale of the company to footwear business Brown Shoe Company....
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