Coach weathers the storm
Luxury goods manufacturer Coach has posted sales of $740 million for its third quarter ended March 28 compared with $745 million in the same period last year, a decrease of just 1%. Net totalled $123 million compared with $162 million, a 24% decline.
During the third quarter, the company opened two retail stores and closed two others, while opening three factory stores in North America, bringing the total to 324 retail stores and 109 factory stores as of March 28. In addition, one retail store and one factory store were expanded. In Japan, Coach opened one factory store, bringing the total number of locations in Japan to 161 at the end of the quarter.
For the nine months ended March 28, net sales were $2.5 billion, up 2% from the $2.4 billion reported in the first nine months of 2008. Net income totalled $486 million, down 15% from the $570 million reported a year ago.
Lew Frankfort, chairman and chief executive officer, said: “We were pleased to generate top line results that were essentially even with prior year and encouraged by the stabilisation of our comparable store sales to pre-Christmas levels in North America.”
He added: “In summary, Coach is financially solid and well positioned to manage through this economic downturn. We have a strong balance sheet, significant cash position, and, despite current lower overall consumer spending, we continue to grow our leading market share in the US handbag and accessory category.”
