Coach outlines new concepts to turn business around
28/10/2014
Twenty stores will reopen globally with the new concept before the holiday period, starting at the end of October with Tokyo, with around 150 retail locations changing next year. Sixty new-concept stores will open during 2015; however, 70 others will close.
It has reined in promotional activity and increased spending on advertising.
“We are very pleased with what we’ve accomplished this quarter,” said Victor Luis, adding that he had confidence in the creative direction, team and resources.
Sales in the third quarter totalled $1.04 billion, a decline of 10% on last year. Sales in Japan, Coach's largest market by store count outside North America, declined 12%. Sales rose in China and the company “remains confident” there despite volatility in the near term.
It sees "long term opportunities" in Europe, targeting sales of $100 million for 2015 compared with $60 million in 2014.
Net income fell 45.3% to $119.1 million.
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