Coach pleased with Stuart Weitzman contribution
16/08/2017
The company said its “strategic decision” to reduce promotional events and close stores in order to elevate its brand positioning in the North American wholesale market had negatively impacted sales growth. It added that this was expected.
Sales for the Coach brand in the fourth quarter were $1.05 billion, a drop of just under 2%. Victor Luis, chief executive of Coach Inc., said the brand had experienced “solid international sales gains, notably in Europe and Mainland China.”
Revenue from footwear brand Stuart Weitzman, which Coach acquired in 2015, was $88 million, nearly 5% higher than in the fourth quarter of the 2015/16 financial year. Mr Luis said the group was pleased with the “overall contribution” of the brand.
For the whole financial year, the Coach group’s sales were flat at $4.49 billion.
Mr Luis also addressed the future of Kate Spade, the accessories brand Coach purchased in May. He said he expected this acquisition to enhance the group’s position in the global premium handbag and accessories market.
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