Home / Knowledge / News / Apparel/Garments / Q2FY15 sales drive down 14% at Coach
Q2FY15 sales drive down 14% at Coach
06
Feb '15
For its second fiscal quarter ended December 27, 2014, sales drove down 14 per cent from a year earlier quarter at Coach Inc, a New York design house of modern luxury accessories and lifestyle collections.

Coach said it reported sales for the second quarter of fiscal 2015 at $1.22 billion compared with $1.42 billion in the same period of the prior year, down 14 per cent.

Reported net income plunged to $183 million or earnings per diluted share of $0.66 from net income of $297 million or earnings per diluted share of $1.06 in the prior year’s second quarter.

For the second quarter of fiscal 2015, on a non-GAAP basis, operating income totaled $299 million as against $436 million reported in the year-ago period.

While operating margin in the same period stood at 24.5 per cent versus 30.7 per cent, reported for the prior year.

During the reporting quarter, on a non-GAAP basis, gross profit slid down to $841 million from $983 million a year ago, and gross margin was 69.0 per cent vis-à-vis 69.2 per cent in the year ago quarter.

SG&A expenses as a percentage of net sales totaled 44.4 per cent on a non-GAAP basis, as compared to 38.5 per cent posted in the same quarter from fiscal 2014.

During the second quarter of fiscal 2015, the company recorded charges of $20 million under its multi-year transformation plan.

These charges consisted primarily of accelerated depreciation for renovations, lease termination costs related to store closures and organizational efficiency costs.

These actions increased the company’s SG&A expenses by $19 million and cost of sales by $1 million, negatively impacting net income by $14 million after tax or $0.05 per diluted share in the second fiscal quarter.

In addition, the company recorded costs of $4 million associated with the pending acquisition of Stuart Weitzman which impacted net income by $2 million after tax or $0.01 per diluted share.

CEO Victor Luis said, “We are encouraged by the green shoots we are seeing in our business, as our brand transformation begins to take hold across the three brand pillars of product, stores and marketing.”

“We continue to be focused on the execution of our strategy with the launch of Stuart Vevers’s spring collection across all channels and ongoing implementation of our fleet optimisation plan,” he added.

He continued, “As we look over our planning horizon, we remain confident in our roadmap to reinvigorate long-term sustainable growth and realize our vision for global modern luxury.” (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search