Coach’s bet on footwear fails to pay off
23/01/2014
The company turned to footwear in the first half of 2013 to “reinforce its fashion credibility” after disappointing sales of handbags, and despite the overall decline, footwear showed “strong growth”.
Coach CEO Victor Luis said: “During the holiday quarter, total sales fell slightly in constant currency as weakness in our North American women's bag and accessories business offset strong growth in men's, footwear, and robust results in emerging Asian markets and Europe.
“At the same time, China results remained resilient with total sales growing about 25% and comparable store sales rising at a double digit rate. Importantly, we continued to advance our transformation initiatives and will launch creative director Stuart Vevers's first collection in September."
The company announced it is to show at New York Fashion week next month. “We view this as an important milestone in our brand transformation, driving fashion credibility and relevance,” said Mr Luis.
”We remain confident in our brand vision, our leadership team and our ability to execute the strategy under way.”
Coach's overall revenue fell 5.6% to $1.42 billion in the quarter.
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