Upscale U.S. fashion and accessories brand COACH reported a sharp decline in sales during its third quarter, hurt by continued struggles in North America, where it is still trying to regain attractiveness among customers.
COACH said comparable sales in North America plummeted 23%, its biggest market and a region where it decided to close down 43 retail stores and 12 outlet stores during the quarter.
COACH total sales in the quarter tumbled 15% to $929.3 million. Net income plummeted to $81.1 million, or 32 cents per share, from $190.7 million, or 68 cents per share, a year ago. Excluding items, net income fell to 36 cents per share.
Coach plans to complete its acquisition of upscale shoemaker Stuart Weitzman in the current quarter. The deal, valued at $574 million, is expected to “immediately” add to its earnings and boost the allure of its brand.
“We continue to be focused on the execution of our strategy, elevating Coach’s perception in the mind of our consumers and reinvesting in the brand,” said CEO Victor Luis in a statement.