Coach puts growth plans on hold
Luxury leathergoods brand Coach Inc has posted a 3% fall in earnings for its second quarter ended December 27.
Net sales were $960 million compared in the second quarter compared with $978 million in the same period last year. Excluding positive currency effects, net sales fell 4%. Net income dropped 14% to $217 million compared with $252 million in the prior-year period.
Chairman and chief executive officer, Lew Frankfort, said, “Despite this being the most difficult holiday season our company has experienced during my 30-year tenure, we were able to report second quarter sales and earnings per share that were only slightly lower than prior year.”
However, he went on to say: “We have revisited our domestic store opening goals for FY10 with an eye toward reducing the number of new stores from our current run rate of 40 North American retail locations per annum to about 20, while also suspending retail store expansions. At the same time, we will continue to implement our distribution growth plans to capture the emerging market opportunity with a particular focus on China, where our growth remains strong.”
