Coach Inc., a leading design house of modern luxury accessories and lifestyle brands, has announced its financial results for the third quarter ended April 1, 2017.
During the said period, net sales for the fashion brand totalled US $ 915 million, noting a decrease of approximately 4 per cent on a reported and constant currency basis, consistent with expectations.
Its gross profit reached US $ 706 million, a down 1 per cent on a reported and non-GAAP basis. Operating income for the quarter on a reported basis totalled US $ 151 million, an increase of 13 per cent, while operating margin was 15.2 per cent versus 13.0 per cent. Net interest expense was US $ 4 million in the quarter as compared to US $ 7 million in the year-ago period.
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Victor Luis, Chief Executive Officer of Coach said, “Our solid performance this quarter was very much in line with our expectations and our strategic initiatives. In a volatile and complex global environment, we delivered continued positive comparable store sales for the Coach brand in North America and gross margin expansion in each segment, while tightly controlling costs. We continued to drive growth in our directly-operated Europe and Mainland China businesses, which represent the most significant geographic opportunities for our brands. And, despite our deliberate pullback in the North America wholesale channel and the impact of calendar shifts, we delivered earnings growth. Importantly, we announced a new leadership structure and strengthened our Coach brand team, a critical step in Coach Inc.’s evolution as a customer-focused, multi-brand organization.”
