Coach Q1 sales jumps 14%
New York City — Coach said Tuesday its first quarter profit increased 14% on strong demand for its products at home and abroad. Its results beat expectations and reflected the continuing strength of the luxury market.
Coach reported net income of $215 million for the three months ended Oct. 1, up from $188.9 million in the year-age period.
Revenue rose 15% to $1.05 billion, from $912 million a year ago. Same-store sales were up 9.2% in North America.
Coach CEO Lew Frankfort said the company is "well positioned for another excellent holiday season," due to the momentum of its business and breadth of offerings.
In North America, Coach opened two stores, including one men’s store and closed two locations. At quarter’s end, the company operated 345 retail stores and 152 factory stores in North America.
Coach has been focusing on increasing its men’s offerings and expanding abroad.
At quarter’s end, the company operated 345 retail stores and 152 factory stores in North America.
Office Depot profit doubles on one-time gains; adjusted results miss Street
Boca Raton, Fla. — Office Depot’s fiscal third-quarter net income more than doubled, but its adjusted results missed analysts’ expectations amid sales declines in North America.
The company earned $91.7 million for the period ended Sept. 24, compared with $32 million a year earlier. But excluding $6 million in restructuring charges and other costs and a $99 million tax benefit, the company lost about $700,000, or break-even per share.
Revenue decreased 2% to $2.84 billion from $2.9 billion amid declining for its North American retail and business solutions units.
Revenue for the international division was up 1%.
ODP delivers earnings growth, but sales weak
BOCA RATON, Fla. — Office Depot delivered higher profits for its third quarter, but sales were down thanks in part to weak comps at its North American retail division. Office Depot reported that total company sales for the third quarter of 2011 were $2.8 billion, a 2% decrease compared with the third quarter of 2010. Net earnings for the quarter were $92 million, or 28 cents per diluted share, compared with $32 million or 12 cents per diluted share for the same period last year.
“I’m pleased with the traction we’re getting in our North American businesses despite a lackluster U.S. economy,” said Neil Austrian, Office Depot’s chairman and CEO. “The successful execution of our key business initiatives is beginning to move the needle.”
Office Depot’s North American retail division reported third-quarter sales of$1.2 billion, down 4% from the prior year. Comparable-store sales decreased 2% for the third quarter. The decline in comparable sales of computers and related products, which began in the later part of the second quarter of 2011, continued during the third quarter and contributed significantly to the division’s overall comparable sales decline, according to the company. Positive comparable sales were reported in supplies, back-to-school essentials, Tech Depot Services and Copy and Print Depot. Furniture sales were essentially flat.
At the end of the third quarter of 2011, Office Depot operated 1,132 stores in the U.S. and Puerto Rico. The North American retail division opened three new stores and closed two stores during the third quarter.
For its North American business solutions division, Office Depot reported sales of $821 million, a 2% decrease compared with the third quarter of 2010. Internationally, sales were up 1% in U.S. dollars and down 7%in constant currencies compared with the third quarter of 2010.