On a constant currency basis sales declined 3% for the quarter. Net income for the period totaled $297 million, with earnings per diluted share of $1.06. This compared to net income of $353 million and earnings per diluted share of $1.23 in the prior year’s second quarter.
For the second fiscal quarter, operating income totaled $436 million, compared to $527 million reported in the prior year, while the operating margin was 30.7% versus 35.0%. During the quarter, gross profit totaled $983 million compared to $1.09 billion a year ago. Gross margin was 69.2% versus 72.2% reported in the prior year. SG&A expenses as a percentage of net sales was 38.5%, compared to the 37.2% reported in the year-ago quarter.
The company also announced that during the second fiscal quarter, it repurchased and retired about 3.3 million shares of its common stock at an average cost of $52.99, spending a total of $175 million and taking the year-to-date total to $350 million. At the end of the period, approximately $1.0 billion remained under the company’s current repurchase authorization.
For the six months ended December 28, 2013, net sales were $2.57 billion, down 4% from the $2.67 billion reported in the first six months of fiscal 2013. On a constant currency basis, sales declined 1% for the period. Net income totaled $515 million compared to $574 million reported a year ago, while earnings per diluted share were $1.82 versus $2.00.
Second fiscal quarter sales results in each of Coach’s segments were as follows:
Total North American sales decreased 9% to $983 million from $1.08 billion last year. North American direct sales declined 8% for the quarter with comparable store sales down 13.6%. At POS, sales in North American department stores were slightly below prior year while shipments into this channel declined as planned.
International sales increased 2% to $425 million from $418 million last year. On a constant currency basis, International sales grew about 11%. As noted, sales in China rose about 25% and the business is on track to meet annual guidance of $530 million.
"In Japan, sales declined 2% on a constant-currency basis, while dollar sales were 21% below the prior year, reflecting the weaker yen. Shipments into international wholesale accounts increased significantly, as expected, due to timing of a Chinese holiday while underlying POS sales trends increased slightly.
Mr. Luis added, “We have taken the initial steps in Coach’s transformation across all aspects of the consumer experience - product, stores and marketing. Notable was the success of the Borough bag - a prelude to a comprehensive re-platforming of our women’s product assortment across bags, accessories and lifestyle categories coming this fall."
Apparel/Garments | On 4th May 2016
Even as Sri Lanka prepares for the third round of talks for a Free...
Textiles | On 4th May 2016
The International Monetary Fund (IMF) expects growth in Asia and the...
Give us an insight about the Swiss yarn production market and how do you...
DLF Emporio and DLF Promenade
How do you see the competition from e-stores? What is the marketing...
How much are textile makers keen to spend on software? What are the future ...
<i><b>Daniel Dayan</b>, CEO of Fiberweb talks about the developments in...
Mr. Johan Berlin
Investkonsult Sweden AB
Mr. Johan Berlin is the majority shareholder and Managing Director of...
Mr. Yogesh Agrawal
Shri Ambica Polymer Pvt. Ltd.
Mr. Yogesh Agrawal started Shri Ambica Polymer Pvt. Ltd. in the year 2005. ...
Occasions Elegance Wear
It is believed that by early 19th century, Varanasi weavers had moved away ...
Bridal couture created with rich Indian heritage, exquisite craftsmanship...
Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...
Apparel/Garments | On 3rd May 2016