Fine accessories brand Coach Inc. (New York) reports sales of $1.05 billion for its first fiscal quarter ended October 1, an increase of 15 percent compared to last year. Net income rose 14 percent for the quarter to $215 million.
“Our strong results this quarter once again reflect the strength of our brand proposition and the vitality of the category, as our customers look to update their wardrobes through our lifestyle accessories offering,” says chairman and ceo Lew Frankfort. “Given the current momentum of our business, strength of our product pipeline, breadth of our assortment and shoppers’ strong interest in accessories for gifts and self-purchase, Coach is clearly well positioned for another excellent holiday season.”
North American comparable store sales rose 9.2 percent for the quarter. In Japan, sales were up 1 percent on a constant-currency basis, while dollar sales rose 10 percent, adjusted for a stronger yen. China results continued very strong, with comparable store sales rising at a double-digit rate.
The company opened two retail stores, including one dedicated Men’s store, and closed two locations during the first quarter of fiscal 2012 in North America. In addition, nine factory stores were opened including one traditional location and eight Men’s factory stores. This brought Coach’s store total to 345 locations and 152 factory stores. Overseas, Coach opened two locations in Japan, four in Mainland China and one in Macau.
“Our first quarter results reflect the successful execution of our global initiatives,” says Frankfort. “We remain confident in our ability to deliver double-digit sales and earnings growth during our planning horizon given the strength of the Coach brand and our increasing global expansion.”