Search
 

Coach Sales Up From Q3, Down Year-Over-Year

NEW YORK CITY-The handbag retailer's new Poppy brand is expected to be 'a continuing success story' over the next year, CEO Lew Frankfort said Tuesday.

By Paul Bubny | Updated on July 28, 2009

NEW YORK CITY-Net income for handbag retailer Coach Inc. totaled $136 million in its fourth fiscal quarter ending June 27, a 9% increase from the previous quarter’s results, but a 21% drop year-over-year from $172 million, according to financial results released Tuesday. CEO Lew Frankfort said in a conference call that Coach’s lower-priced new Poppy brand has been a strong traffic-builder since its June 26 launch and is likely to help power sales through fiscal 2010.

Sales declined in Q4 by 1% year-over-year to $778 million, driven by same-store sales dips that were partly offset by a 3% gain in direct-to-consumer business. The quarterly results compared favorably to the $740-million tally of Q3. Net sales for fiscal 2009 were up 2% over the previous year to $3.23 billion, while net income for the year totaled $622 million, compared to an FY 2008 total of $742 million.

Frankfort said in Tuesday’s conference call that the year’s results demonstrated the “resiliency” of the Coach model “even in the midst of an extraordinary, challenging environment.” A big plus was the company’s penetration into the Chinese market, where it opened 28 stores in fiscal ’09.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.