Coach, the New York based design house of modern luxury accessories and lifestyle collections, reported net sales of 1 136.2 million US dollars for its fourth fiscal quarter ended 28th June 2014, compared with 1 222.7 million US dollars reported in the same period of the prior year, a decrease of 7.1%. On a constant currency basis, total sales declined 6% for the period. Reported net income dropped 66.0% and totaled 75.3 million US dollars with earnings per diluted share of 0.27 US dollars compared to the prior year’s reported net income of 221.3 million US dollars and earnings per diluted share of 0.78 US dollars.

For the entire fiscal year ended at the 28th June 2014, net sales declined 5.3% to 4 806.2 million US dollars from 5 075.4 million US dollars in the the prior fiscal year. Net income was 781.3 million US dollars versus 1 034.4 million US dollars in fiscal 2013. On a constant currency basis sales declined 3% for the year.
Victor Luis, Chief Executive Officer of Coach, Inc. commented: “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 US dollars in sales in China, and driving Men’s to about 700 million US dollars in sales globally. Most importantly, we laid the groundwork for our brand transformation (...) We also developed our new retail concept, inspired by our New York City heritage, using an iconic materials palette that is distinctively Coach. Most recently in June, we unveiled our comprehensive long-term strategic plan to reinvigorate our business, and rewrite the Coach playbook to achieve growth and leadership. We are taking the key transformation actions to enable the strategic path forward, embarking on the execution phase of our journey.”

Total North America sales decreased 16% for the quarter to 691 million US dollars from 825 million US dollars last year. For the full year, total North American sales decreased 11% to 3.10 billion US dollars from 3.48 billion US dollars last year.

International sales increased 7% for the quarter to 414 million US dollars from 388 million US dollars last year. On a constant currency basis, sales rose 9% for the quarter. China results continued to be very strong, with total sales growing 20%. On the other hand, Japan posted decreasing sales (-6%) comparing to similar period in the previous year.

For the full year, international sales rose 6% to 1.64 billion US dollars from 1.56 billion US dollars generated in fiscal 2013. On a constant currency basis, sales rose 12% for the year. China results were robust, with total sales growing over 25% to 545 million US dollars. In Japan, sales were equal to prior year on a constant currency basis, while dollar sales declined 14%, reflecting the weaker yen.

The company recently announced they will be launching a full men’s footwear collection, and as from next month onwards all global stores will carry the footwear collection exclusively. Coach will begin wholesaling of this new range a year after its launch. Prices for items in this collection, which includes 15 new styles, range from 175 US dollars to 495 US dollars.

Company’s shares were last traded at 36.22 US dollars at the New York Stock Exchange on the 11th of August.

For more information about Coach, please refer to the company's website.