Coach Inc. (New York) reported sales of $951 million for its fourth fiscal quarter ended July 3, 2010, compared with $778 million reported in the same period the prior year, an increase of 22 percent. Net income increased 34 percent to $196 million. The company noted that results for the fourth quarter and fiscal year ending July 3, 2010, included 14 and 53 weeks, respectively, while the same periods in fiscal 2009 included 13 and 52 weeks, respectively. Therefore, excluding the extra week, sales would have risen 13 percent for the quarter, while sales for the year would have been up 10 percent.
“This quarter’s performance demonstrated a continuation of the resilience we have seen throughout the year, as our market share expanded across all geographies,” says Lew Frankfort, chairman and ceo of Coach Inc.
Looking back on the year, the luxury accessories retailer reports that sales for the first full year of direct operation of its stores in China doubled. The brand also opened its first standalone men’s stores, as well as continued its expansion into Western Europe.
Among its primary channels of distribution, direct-to-consumer sales for the fourth fiscal quarter rose 23 percent; North American same-store sales grew 6.3 percent; and Japanese sales rose 6 percent;
“Our growth this year demonstrates our ability to effectively navigate a volatile environment by evolving our merchandising, marketing and pricing strategies,” says frankfort. “Our performance also reflects the increasing globalization of the Coach brand, as we strive to replicate our success formula in emerging markets such as China.”