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

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Eamonn Tighe
Nature Works LLC

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search