New York City Coach reported a 34% increase in its fiscal fourth-quarter earnings on Tuesday, as the company continued to experience sales pick up in North America and China.
Net income for the quarter, which ended July 3, rose to $195.5 million, from $145.8 million a year earlier. Sales rose 22% to $950.5 million. Without the extra week in the quarter, Coach said sales would have been up 13%. Analysts had estimated sales for the company of $889.2 million.
North American same-store sales rose 6.3%.
“I'm very pleased with our fiscal fourth quarter and full-year results," said chairman and CEO Lew Frankfort. "Our results reflect the growing recognition of the Coach brand globally, and consumers' strong response to our product offering. It was also a year of many milestones, including the first full year of direct operation of our stores in China -- where sales at retail doubled -- the opening of our first stand-alone Men's stores, and our expansion into Western Europe, as we laid the groundwork for strong top and bottom line results in the years ahead."
Coach continues to push international expansion, especially in China Currently, the company has 41 locations in China.
“Clearly, China is our biggest opportunity, as our brand takes hold and the market continues to develop rapidly,” Frankfort said. “We've started developing a multichannel distribution model in China, including retail stores, shop-in-shops and flagships and expect to accelerate new store openings, with about 30 new locations planned this year. During this fiscal year, we'll begin to open stores in the United Kingdom, Portugal and Spain, starting with first locations in Spain and Portugal this fall, in El Corte Ingles, as part of our joint venture with Hackett Limited."