Coach profit falls amid increased competition
New York — Coach Inc. third-quarter net income dropped 20% to $190.7 million, from $238.9 million a year earlier, amid increased competition from Michael Kors and others.
Revenue for the quarter ended March 29 fell 7.4% to $1.1 billion, compared to analysts’ $1.13 billion estimate. Same-store sales in North America fell 21%. Sales will continue to fall through the rest of the year, the company said.
“Our business in North America remained challenging in the period, exacerbated by the weather and shift of the Easter holiday. We experienced sharply lower traffic levels in our stores while our internet results were impacted by our strategic decisions to eliminate third party events, as well as limit the access and invitations to our factory flash site,” Victor Luis, Coach CEO, said in a statement.
Coach fared much better outside North America. International sales rose 14% to $441 million, excluding currency impacts. Factoring in foreign-exchange rates, international sales grew 20%.
Amazon opens ‘Wearable Technology’ shop on its site
New York — Amazon has opened a Wearable Technology store on its website, which it describes as a one-stop shop where customers can discover the latest in wearable technology and research wearable devices including activity trackers, smart watches and wearable cameras.
“Wearable technology is an exciting category with rapid innovation and our customers are increasingly coming to Amazon to shop and learn about these devices,” said John Nemeth, director of wireless and mobile electronics at Amazon. “We’re thrilled to bring our customers a store with the largest selection and great prices that helps eliminate the guesswork when deciding which wearable devices best fit their needs — whether that is tracking activity, staying connected through smart watches or capturing their next adventure with wearable cameras.”
To help customers learn more about wearable technology, the store features a “Learning Center” that includes product videos and detailed buying guides. These resources provide information about device compatibility, product comparisons and use-case suggestions to help customers find the right device for them. Customers can also take advantage of the “Editor’s Corner” to find information about wearable technology industry news and device reviews.
Walmart and CEOs meet to accelerate supply chain innovation
Bentonville, Ark. — Walmart on Tuesday joined with CEOs from more than a dozen global companies to sign new commitments that accelerate innovation in sustainable agriculture and recycling. The pledges kicked off Walmart’s first-ever Sustainable Product Expo, a three-day collaboration to expand the availability of products that sustain people and the environment. Together, the participating suppliers represent more than $100 billion in sales at Walmart.
Eight of the largest food companies announced pledges to help ensure that tomorrow’s food supply is affordable and sustainable for the nine billion people projected to inhabit the planet by 2050. The commitments aim to drive more collaboration and efficiency across the current food system. In total, this work is expected to bring eight million acres of farmland into sustainable agriculture programs and eliminate six million metric tons of greenhouse gas emissions (GHGs).
Additionally, companies joined with Walmart and the Walmart Foundation in announcing plans to launch a groundbreaking recycling initiative called the Closed Loop Fund, with the goal of making recycling available to all Americans. The Fund aims to invest $100 million in recycling infrastructure projects and spur private and public funding for transforming the recycling system in the United States.
“Walmart and our suppliers recognize that collaboration is the key to bringing sustainable solutions to all of our customers,” said Doug McMillon, president and CEO of Walmart Stores. “A great deal of innovative work is happening every day, but there are still too many gaps and missed opportunities. Today’s commitments are about creating real systems change from one end of the supply chain to the other — meaning how products are grown and made, how they’re transported and sold, and how we touch the lives of people along the way.”