Coach Net Income Declines

New York City The economy continues to take its toll on luxury retailers, including Coach. The company reported that in its first quarter net income declined 6% to $146 million. Revenue rose 11% to $752.5 million.

The company estimates second fiscal-quarter sales will jump to approximately $1.05 billion, representing a year-over-year increase of about 8%. Coach expects a new line of handbags and updates to existing lines to contribute to this increase, as well as spur holiday sales. Looking ahead, the company cut its fiscal-year sales guidance. Coach now expects sales to rise 10% from last year—from a previous estimate of 13%—to about $3.5 billion.