Coach profits up 21%
US leathergoods firm Coach has announced that its fiscal third-quarter earnings rose 21% on strong sales in China as the company also raised its dividend 33%.
The company has seen its profit grow for over two years 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 March 31, Coach reported a profit of $225 million, up from $186 million, a year earlier. Sales jumped 17% to $1.11 billion. Gross margin rose to 73.8% from 72.8%.
Direct-to-consumer sales, which now include its Singapore business, increased 18% to $984 million. Same-store sales rose 6.7% in North America.
Sales were up 10% in Japan, on a constant-currency basis. China, which the company has called its largest geographic growth opportunity, saw sales grow 60%, driven by distribution growth and double-digit same-store sales. Indirect sales rose 10% to $125 million.
