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Coach Q1 profits down on weak U.S. sales

New York -- Coach reported a decline in first-quarter profit amid declining North America sales. The company had net income of $217.88 million, down from $221.38 million in the previous year.
 
Net sales for the quarter fell 1% to $1.15 billion from $1.16 billion a year ago, below analysts' estimate of $1.19 billion.

In North America, total sales fell 1% to $778 million, and same-store sales were down 6.8%.  International sales edged down to $365 million. On a constant currency basis, International sales rose about 9% from the prior year.

“Beginning now and throughout the holiday season, consumers will see a fuller expression of the Coach brand, with the arrival of a limited edition capsule collection across all product categories,” said Coach president and chief commercial officer Victor Luis, who, in a previously announced change, will assume the CEO role from Lew Frankfort in January.
     
Luis said that the company will soon unveil a new store concept in New York and Southern California. “Our intent is to drive brand relevance and increase Coach’s resonance with our consumers,” Luis said.

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