US: Strong sales in China boost Coach's Q3 profit
- Net income up 21% to $225m
- Q3 sales up 17% to $1.11bn
- China sales up 60%
Strong sales in China helped luxury footwear and handbag maker Coach to book a 21% increase in third-quarter net profit today (24 April).
Net income for the quarter ended 31 March reached $225m, while operating income jumped 21% to $337m.
Total sales were up 17% to US$1.11bn. In China, sales were up nearly 60%, driven by distribution growth and double-digit comparable location sales. The company opened five new stores in the country during the quarter, bringing the total to 85.
Sales in Japan rose 10% on a constant-currency basis, while dollar sales rose 14%, boosted by a stronger yen. Direct-to-consumer sales, which now include Singapore and Taiwan, increased 18% to $984m, while North American comparable store sales climbed 6.7%. Indirect sales increased 10% to $125m during the period.
Lew Frankfort, chairman and CEO of Coach, said: "Our results demonstrated the brand's resonance across channels, categories and geographies and reflected the effectiveness of our new pricing and promotional strategies in our North American factory business."
"Given the strength of our business, we remain confident in our ability to continue to drive sales and earnings at a double-digit pace over our planning horizon," Frankfort added.
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