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Sales at lifestyle brands retailer Coach dip 12% in Q4FY15
06 Aug '15
3 min read
Coach Inc, a retailer of luxury accessories and lifestyle brands witnessed its sales dipping 12 per cent year over year in the fourth fiscal quarter ended June 27, 2015.
“Coach reported net sales of $1.00 billion for its fourth quarter of fiscal 2015, which includes a $43 million contribution from the acquisition of Stuart Weitzman in May 2015,” a Coach press release said.
This compares with $1.14 billion it posted in the same period of the prior fiscal. On a constant currency basis, total sales declined 8 per cent for the quarter.
Net income for the quarter totaled $85 million or earnings per diluted share of $0.31, excluding transformation-related charges and acquisition costs.
Coach added that the acquisition of Stuart Weitzman contributed $2 million to net income and $0.01 to earnings per diluted share for the quarter.
As against this, it had posted a net income in the fourth quarter of fiscal 2014 of $164 million with earnings per diluted share of $0.59, excluding transformation and other actions.
Reported net income for the reporting quarter was $12 million with earnings per diluted share of $0.04 compared to reported net income of $75 million and earnings per diluted share of $0.27 in the fiscal ago quarter.
During the fourth quarter of fiscal 2015, the company recorded charges of $66 million under its multi-year transformation plan.
These charges consisted primarily of accelerated depreciation for renovations, lease termination costs related to store closures and organisational efficiency costs.
In addition, the company reported costs of approximately $21 million associated with the acquisition of Stuart Weitzman in the fourth quarter.
Taken together, these increased its SG&A expenses by $83 million and cost of sales by $5 million, negatively impacting net income by $73 million after tax or about $0.27 per diluted share.
The Company ended the quarter under review with inventory of $485 million including $33 million associated with the acquisition of Stuart Weitzman.
This compared to ending inventory for the Coach brand of $526 million in the fourth quarter of fiscal 2014, which meant inventory declined 8 per cent overall and 14 per cent for the Coach brand.
The company also announced that its board of directors declared a quarterly cash dividend of $0.3375 per common share, maintaining an annual rate of $1.35.
The dividend is payable on September 28, 2015 to shareholders of record as of the close of business on September 8, 2015.
CEO Victor Luis said, “We are pleased with our fourth quarter and full year progress on the comprehensive plan we laid out a year ago to reinvigorate our brand and business.”
“Our execution of these strategic initiatives and resulting performance has been consistent with our expectations and underscores our confidence in the path we have chosen,” he noted. (AR)
“Coach reported net sales of $1.00 billion for its fourth quarter of fiscal 2015, which includes a $43 million contribution from the acquisition of Stuart Weitzman in May 2015,” a Coach press release said.
This compares with $1.14 billion it posted in the same period of the prior fiscal. On a constant currency basis, total sales declined 8 per cent for the quarter.
Net income for the quarter totaled $85 million or earnings per diluted share of $0.31, excluding transformation-related charges and acquisition costs.
Coach added that the acquisition of Stuart Weitzman contributed $2 million to net income and $0.01 to earnings per diluted share for the quarter.
As against this, it had posted a net income in the fourth quarter of fiscal 2014 of $164 million with earnings per diluted share of $0.59, excluding transformation and other actions.
Reported net income for the reporting quarter was $12 million with earnings per diluted share of $0.04 compared to reported net income of $75 million and earnings per diluted share of $0.27 in the fiscal ago quarter.
During the fourth quarter of fiscal 2015, the company recorded charges of $66 million under its multi-year transformation plan.
These charges consisted primarily of accelerated depreciation for renovations, lease termination costs related to store closures and organisational efficiency costs.
In addition, the company reported costs of approximately $21 million associated with the acquisition of Stuart Weitzman in the fourth quarter.
Taken together, these increased its SG&A expenses by $83 million and cost of sales by $5 million, negatively impacting net income by $73 million after tax or about $0.27 per diluted share.
The Company ended the quarter under review with inventory of $485 million including $33 million associated with the acquisition of Stuart Weitzman.
This compared to ending inventory for the Coach brand of $526 million in the fourth quarter of fiscal 2014, which meant inventory declined 8 per cent overall and 14 per cent for the Coach brand.
The company also announced that its board of directors declared a quarterly cash dividend of $0.3375 per common share, maintaining an annual rate of $1.35.
The dividend is payable on September 28, 2015 to shareholders of record as of the close of business on September 8, 2015.
CEO Victor Luis said, “We are pleased with our fourth quarter and full year progress on the comprehensive plan we laid out a year ago to reinvigorate our brand and business.”
“Our execution of these strategic initiatives and resulting performance has been consistent with our expectations and underscores our confidence in the path we have chosen,” he noted. (AR)
Fibre2Fashion News Desk – India
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