as upscale shoppers cut back cheap jerseys china
NEW YORK (MarketWatch) Coach Inc. said Tuesday that its fiscal fourth quarter profit fell 32% as the upscale retailer increased promotions at discount factory outlets and comparable sales at its North American stores fell more than analysts expected.
Net income fell to $145.8 million, or 45 cents a share, in the three months ended June 27, down from $213.5 million, or 62 cents a share, in the final quarter of fiscal 2008.
Like other labels and retailers that cater to luxury or so called aspirational shoppers, Coach has been hurt by consumers who are paring their spending on things they don't need, analysts said. wholesale nfl jerseys china
Chief Executive Lew Frankfort has lowered Coach's average handbag price and introduced more products at what it called the sweet spot between $200 and $300, a move that the company said has led to an improvement in handbag sales trends.
That includes Coach's new Poppy collection of bright and color printed bags, unveiled through some pop up stores, Facebook, e mail campaigns, standalone websites and fashion blogs. The new line, with an average handbag price of about $260, has improved sales at Coach's full price stores and created what the company called a "significant" inflection point. Cheap NFL Jerseys
Still, total North American same store sales in the quarter dropped 6.1%, missing analysts' estimate of a 4% decline and also worse than the prior quarter end. That signaled a decelerating trend in the company's factory outlets, which may post declining same store sales in July for the first time in 31 quarters, according to analyst Todd Slater of Lazard Capital Markets. He said outlets were the company's second most profitable channel after Japan.
"We still remain somewhat guarded on a slowing accessories category, already high market share by Coach and a price sensitive consumer," said Jefferies Co. analyst Randal Konik.
Gross margin narrowed to 70.4% in the latest quarter from the prior year's 75.9%, hurt in part by what Coach described as the continued promotional environment.
Direct to consumer sales increased 3% to $683 million.
Comparable sales in Japan dropped 4% and would have fallen 10% excluding currency translations. Comparable sales in China rose at least 10%, the company said.