Coach profits increase
US-based leathergoods company Coach has posted double-digit profit growth in recent quarters on the strength of its North American direct-to-consumer businesses and global expansion.
The company is also broadening its men's business with more male-oriented products and by opening men's stores in the US and Japan. But Coach had warned that the March 11 earthquake and tsunami in Japan would lower fiscal fourth-quarter sales by about $20 million.
For the quarter ended July 2, Coach reported a profit of $202.5 million, up from $195.5 million, a year earlier.
Gross margin fell to 71.8% from 73.3%, while direct-to-consumer sales increased 9%.. Same-store sales, on a comparable basis, rose 10.1% in North America. Same-store sales fell 2% in Japan, reflecting the stronger yen.
