Coach, A leading marketer of modern classic American accessories, today reported sales of US$1.16 billion for it’s fourth fiscal quarter ended June 30, 2012, compared with US$1.03 billion reported in the same period of the prior year, an increase of 12%. For the fiscal year, net sales rose 15% to $4.76 billion from US$4.16 billion the prior fiscal year while net income increased 18% to US$1.04 billion from US$881 million, very nice work if you can get it, they’re clearly doing things right.
Lew Frankfort, Chairman and CEO of Coach, Inc., said, ”I’m pleased that we were able to once again achieve strong double-digit sales and earnings gains for our fiscal fourth quarter and full year.” Coach met their objectives this year attacking their international business, becoming a market leader in the Men’s accessories category and utilising thepower of the digital world. In FY12, within the Asian markets they concentrated on accelerating acquisitions of key Asian domestic distributors and increased distribution within emerging luxury markets such as China.
During the fourth quarter their international sales remained prosperous however in North America, factory stores were operating within an increasing promotional environment leading to dwindling sales figures. For the full year, indirect sales rose 4% on a comparable basis to US$531 million from US$512 million recorded for fiscal year 2011.
On a lighter note, Coach were delighted to announce their newly launched dual-gender Legacy Lifestyle Collection which will usher in a whole new retail concept for the aspirational luxury leathergoods purveyor. This dual-gender collection will be a cornerstone of their business moving forward and will impact everything from marketing to packaging to the environment, i.e. what the stores look like. It will most definitely be a face lift for the brand opening up a new demographic of multi generational consumers through the door.
Back to the finance news, in summary – FY13 will be an investment year, as Coach amplify their actions to drive long-term growth. Most significantly growth in acquisitions within the domestic retail operations of key Asian distributors – including those in Malaysia and Korea in the first quarter – and the further development of the infrastructure to support their global growth. In addition, they are distorting investments in the digital space to strengthen their capabilities and deepen their engagement with consumers. By the sounds of Coach they are moving with the times and attacking different markets to further define themselves as a modern leading American brand of classic quality and lifestyle accessories. Store launches, collaborations with Macy’s the list goes on. Here at The MO Down we wish them all the success!
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