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Coach posts 4% profit rise in Q4
New York City -- Coach reported Tuesday that net income for the fourth quarter rose 4% to $202.5 million, compared with $195.5 million in the year-ago period.
Revenue surged 9% to $1.03 billion, edging Wall Street estimates. Same-store sales rose 10.1% in North America.
Coach’s performance is in line with overall strength in the luxury category. During the recessionary onslaught, the company pushed sales of handbags priced under $300, but said its average retail price of handbags is now inching back up.
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Talbots adopts poison pill on word of looming buyout
New York City -- The Talbots said on Tuesday that its board of directors has adopted a shareholder rights plan -- or a poison pill -- to protect its stockholders after a private equity firm disclosed it had acquired a sizeable stake in the company.
On Monday, Sycamore Partners LP revealed it had acquired a 9.9% stake in Talbots and said it planned to attempt to talk with the retailer about strategy and operations.
Reports put Talbots’ market value at $288 million, and suggest a buyout would exceed $400 million.