Coach Q2 sales down 6 percent

REPORT_ Coach second quarter sales have declined by 6 percent. On a constant currency basis sales declined

3 percent for the quarter. Operating margin was 30.7 percent versus 35 percent for the same period last year. Gross margin was 69.2 percent versus 72.2 percent reported in the prior year. SG&A expenses as a percentage of net sales was 38.5 percent compared to 37.2 percent reported in the year-ago quarter. Total North American sales decreased 9 percent. International sales increased 2 percent. Sales in China rose about 25 percent. In Japan, sales declined 2 percent on a constant-currency basis.

For the six month period sales fell one percent on a constant currency basis. Victor Luis, Chief Executive Officer of Coach, said, “We have taken the initial steps in Coach’s transformation across all aspects of the consumer experience - product, stores and marketing. We introduced a new, dual gender lifestyle store concept in two key locations. And, in marketing, we expanded our initiatives, leveraging key style influencers in our ongoing campaign. Next month we will participate in our first New York Fashion Week. We remain confident in our brand vision, our leadership team and our ability to execute the strategy underway. We look forward to sharing our strategic plan to drive brand vibrancy and long-term value creation during our analyst day in early June.”

Coach is based in New York. It is a marketer of accessories and gifts for women and men, including handbags, men’s bags, women’s and men’s small leather goods, footwear, outerwear, watches, weekend and travel accessories, scarves, sun wear, fragrance, jewelry and related accessories.