Sales rise 28% at Coach
The luxury goods sector keeps on producing positive news. US leathergoods, accessories and footwear brand Coach, Inc. posted significantly better sales for the first fiscal quarter ended September 29. Net sales increased 28% to reach $677 million, up from $529 million in the same period of the prior year, reflecting a 26% rise in direct-to-consumer sales at $508 million, and a 35% increase in indirect sales at $169 million.
In spite of these positive results the company remains cautious about holiday sales due to the recent financial problems in the USA and rising fuel prices which could lead to a slump in consumer spending. Lew Frankfort, chairman and CEO, said, "While we're well positioned for the holiday season, we are however concerned with recent traffic trends in our North American retail stores reflecting the retail environment and the unusually difficult comparisons with last year.”
