Coach Inc. (New York), a marketer of modern classic American accessories, announced sales increased 19 percent to $1.26 billion for its second fiscal quarter ended January 1, 2011, compared with $1.07 billion reported in the same period of the prior year. Net income for the quarter totaled $303 million.
“We’re extremely pleased with the strong holiday sales and earnings growth we achieved, marking a continuation of the trends we have seen throughout the past calendar year,” says Lew Frankfort, chairman and ceo, Coach Inc. “Our performance – led by exceptional North American comparable store sales – reflected the brand’s vibrancy across channels and geographies.”
Across its channels of distribution, Coach saw direct-to-consumer sales grow 17 percent. North American comparable store sales for the quarter rose 12.6 percent. In Japan, sales were even on a constant-currency basis, while dollar sales rose 8 percent driven by a stronger yen. China sales remained robust, as POS sales continued to comp at a double-digit rate.
Indirect sales increased 28 percent to $168 million in the second quarter from the $131 million reported in the prior year. This gain reflected significant growth in shipments into international wholesale and U.S. department stores.
During the second quarter of fiscal 2011, the company opened two retail stores and one factory store in North America, one store in Japan and three new locations in China.
“We were also particularly pleased with the traction we’re achieving in our men’s business, a key global initiative for Coach,” says Frankfort. “Specifically, we are achieving excellent results in our full priced businesses in our New York City concept store, shops in Japan and in our retail stores that carry a broader men’s assortment. We’re also delighted with the initial performance of our dedicated men’s factory stores, both in the U.S. and in Japan.”