• Q2 net income up 11% to US$241m
  • Sales up 11% to $1.07bn
  • Aims to accelerate growth in China

Accessories company Coach posted an 11% rise in second quarter profit to US$241m as the business returned to comps growth in North America.

Sales for the three months to 26 December were up 11% to $1.07bn, while operating income rose 9% to $381m, Coach said.

That left first half net sales up 7% to $1.83bn, with net income increasing 5% to $382m.

Second quarter direct-to-consumer sales surged 14% to $934m, while North American comparable store sales returned to growth for the first time in more than a year, rising 3.2%.

However, sales in Japan dipped 2%, and were overshadowed by robust revenues in China, where POS sales continued to show double-digit growth.

As a result, Coach plans to accelerate its growth strategy in China, opening more retail stores and boosting its presence within other retailers.

Indirect sales were down 8%, thanks to reduced shipments into US department stores caused by tighter inventory management.

Coach chairman and CEO Lew Frankfort said the company was pleased by the results, which he said "reflected continued traction of the initiatives we have put in place to adapt to the changed environment".

He added: "Our pricing and product initiatives have resonated with our consumer base, both here in North America and internationally.

"Despite the challenging retail environment, we're confident that we'll continue to deliver healthy sales and earnings growth over the balance of the fiscal year.

"We're well-positioned for the 'new normal', and expect to further expand our North American market share, irrespective of category growth."

Click here for just-style editorial insight into Coach's second quarter results.