Coach rides high despite tough times
American luxury footwear and leather accessories brand Coach has managed to report strong second quarter results despite a “tough retail environment in the US.”
The company posted net sales of $978 million compared with $806 million in the same period of the prior year, while net income increased 18% to $252 million, up from $214 million, with the gains once again largely attributable to expansion in China and the Asia Pacific region, although its North American business also performed well.
Direct-to-consumer sales increased 18% to $799 million from $675 million last year which surprisingly, considering the current economic mood, included a 19% gain in sales from new and existing Coach stores in North America.
Commenting on the double-digit growth Lew Frankfort, chairman and chief executive, said, "We were very pleased to deliver holiday results which met our top and bottom-line expectations. Our strong overall performance reflects the critical balance provided by our diversified business model, which limits our dependence on any one channel. This enabled us to achieve our sales and earnings goals despite a tough retail environment in the US."
