New York City -- Coach's third-quarter net income increased 18% amid higher demand in North America, which helped offset an estimated $20 million hit to its revenue from Japan's tsunami and earthquake. Same-store sales in North America rose 10.3%. Analysts said Coach’s results offered further proof that spending by affluent shoppers is back on track and rising faster than other segments.
Net income rose to $186 million for the three months that ended April 2, up from $157.6 million a year earlier. Revenue rose nearly 15% to $950.7 million.
Revenue from Coach stores and online orders rose 15% to $832 million. Revenue from sales to department stores and other retail outlets rose 14% to $119 million.
During the third quarter of fiscal 2011, the company closed three retail stores and opened five factory stores in North America, bringing the total to 344 retail stores and 134 factory stores - including eight Men's factory stores - as of April 2.
Coach chairman and CEO Lew Frankfort said that the company is achieving excellent results in all retail stores, including its dedicated men's shops in Japan and New York City.
“We're looking forward to opening two more men's retail stores in the U.S. over the next few months,” he added.