Coach Q4 sales increase by 12 percentTuesday, 31 July 2012
Coach, a marketer of modern classic American accessories,
reported sales of 1.16 billion dollars for its fourth fiscal quarter ended June 30, 2012, an increase of twelve percent compared with 1.03 billion dollars reported in the same period the prior year.
Net income for the quarter totaled 251 million, with earnings per diluted share of 0.86. This, compared to net income of 202 million and earnings per diluted share of 0.68 in the prior year’s fourth quarter, signifies increases of 24 percent and 27 percent respectively.
For the fiscal year, net sales rose 15 percent to 4.76 billion dollars from 4.16 billion dollars the prior fiscal year while net income increased 18 percent to 1.04 billion dollars from 881 million. In addition, diluted earnings per share rose 21 percent to 3.53 from 2.92.
Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, “I’m pleased that we were able to once again achieve strong double-digit sales and earnings gains for our fiscal fourth quarter and full year. In FY12, we accelerated the acquisition of key Asian domestic distributors and grew our distribution rapidly in emerging luxury markets such as China. During the fourth quarter our international sales remained robust, driven by both distribution and productivity increases. In North America, however, an increasingly promotional environment led to lower than expected growth in factory stores.”
In the fourth quarter Coach’s direct-to-consumer sales, which now include Singapore and Taiwan, increased 13 percent to 1.05 billion dollars from 924 million last year. North American same store sales for the quarter rose 1.7 percent on a comparable basis. China results continued to be exceptional with overall sales growth of 60 percent and same store sales rising at a double-digit rate. Sales at Coach Japan increased 16 percent versus the prior year in constant currency and rose 18 percent in dollars.
For the full year, direct-to-consumer sales rose 16 percent to 4.23 billion dollars from 3.65 billion dollars generated in fiscal 2011. Overall, North American same store sales for the fiscal year rose 6.6 percent on a comparable basis. In China, sales exceeded 300 million and rose over 60 percent, driven by both new store openings and double-digit increases in same store sales. Fiscal 2012 sales at Coach Japan were up six percent in constant currency and rose twelve percent in dollars.
For the full year, indirect sales rose four percent on a comparable basis to 531 million from 512 million recorded for fiscal 2011.
As of June 30, 2012, the company had a total of 354 retail stores and 169 factory stores in North America. In China, eleven net locations were opened, bringing the total to 96. In Japan, at the end of the quarter, there were 187 total locations. At year-end, there were seven locations in Singapore and 27 in Taiwan.
Coach, with headquarters in New York, is a marketer of fine accessories and gifts for women and men, including handbags, men’s bags, women’s and men’s small leather goods, weekend and travel accessories, footwear, watches, outerwear, scarves, sun wear, fragrance, jewelry and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website.