Coach reports sales of $1.45b for Q2
US leathergoods brand Coach has announced sales of $1.45 billion for its second fiscal quarter ended December 31, 2011, compared with $1.26 billion reported in the same period of the prior year, an increase of 15%. Net income for the quarter was $347 million, compared to net income of $303 million in the prior year's second quarter, increases of 15% and 18%, respectively.
Lew Frankfort, chairman and CEO said: “We’re very pleased with the strong sales and earnings growth we achieved once again this holiday quarter. Our performance reflected the strength of our franchise, our broad and diversified product platform and our multichannel, international distribution model.”
Mr Frankfort continued: “We were especially pleased with our ongoing strength in North America during the holiday season, as total revenues rose 15%. This growth indicates that we are continuing to increase our share of an expanding US accessories market. In our direct-to-consumer businesses, all channels benefited from our innovative digital media strategy, spanning our own websites, mobile platform and social media, which enabled customers to purchase wherever they preferred to engage with our brand.
“Internationally, our directly-operated businesses are also growing nicely, as China continues to post excellent gains and remains on track to generate at least $300 million in sales this year. Just after the quarter, and consistent with our strategy of directly operating select Asian markets, we took control of our domestic retail business in Taiwan. As previously discussed, we will be acquiring our Malaysian retail business in July.”
