"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," Victor Luis, chief executive officer of Coach, said.
The gross profit for the Coach brand totaled $656 million, a decrease of 2 per cent on a reported and non-GAAP basis. Gross margin for the quarter increased 180 basis points over prior year, including approximately 20 basis points of benefit from currency, to 71.7 per cent on both a reported and non-GAAP basis.
However, the net sales for the Coach brand totaled $915 million for the third fiscal quarter, a decrease of approximately 4 per cent on a reported and constant currency basis, consistent with expectations. (RR)
ALCHEMPro News Desk – India
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