Coach to open more men’s stores
US-based luxury handbag, accessories and leathergoods maker 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 also is broadening its men’s business with more male-oriented products and by opening men’s stores in the US and Japan.
For the quarter ended October 1, Coach reported a profit of $215 million, up from $188.9 million, a year earlier. Revenue jumped 15% to $1.05 billion.
Gross margin fell to 72.8% from 74.2%.
Direct-to-consumer sales, which now include its Singapore business, increased 17%. Same-store sales rose 9.2% in North America and grew 1% in Japan, on a constant-currency basis. China, which the company has called its largest geographic growth opportunity, saw double-digit same-store sales growth.
Indirect sales increased 4%, reflecting modest growth in shipments into international wholesale and US department stores.
