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Coach net sales decline 5.08 percent in FY14

By FashionUnited

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Fashion

REPORT_ Coach has reported that for the fiscal year, net sales declined 5percent to 4.81 billion dollars from 5.08 billion dollars the prior fiscal year. On a constant currency basis sales declined 3percent for the year. Its net sales were 1.14 billion dollars for its fourth fiscal quarter ended June 28,

2014, compared with 1.22 billion dollars reported in the same period of the prior year, decreased 7 percent. On a constant currency basis, total sales declined 6 percent for the period.


Commenting on the results, Victor Luis, Chief Executive Officer of Coach, said, “The fourth quarter capped a challenging year for the company, most notably in the North America women’s bag and accessory business. However, it was also a year of many accomplishments for Coach, including the successful integration of our retail businesses in Europe, surpassing 500 million dollars in sales in China, and driving men’s to about 700 million dollars in sales globally. A crucial milestone was the arrival of Executive Creative DirectorStuart Vevers last September.”

Net income for the quarter totaled 164 million dollars, with earnings per diluted share of 0.59 dollars. Reported net income totaled 75 million dollars with earnings per diluted share of 0.27 dollars compared to the prior year’s reported net income of 221 million dollars and earnings per diluted share of 0.78 dollars.

For the fiscal year, diluted earnings per share on a non-GAAP basis totaled 3.10 dollars as compared to 3.73 dollars in the prior year. Reported net income for the year totaled 781 million dollars and earnings per diluted share were 2.79 dollars, compared to reported net income for the prior year of 1.03 billion dollars with earnings per diluted share of 3.61 dollars.

For the quarter, on a non-GAAP basis, operating income totaled 231 million dollars compared to 371 million dollars in the prior year, while operating margin was 20.4 percent versus 30.3 percent. During the quarter, on a non-GAAP basis, gross profit totaled 789 million dollars versus 892 million a year ago dollars, while gross margin was 69.4 percent versus 73 percent.

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