The luxury leather company, which is pushing hard for a comeback (just a year ago the brand posted a 19 percent sales drop), is seeing some of the fruits of its labor pay off.
Coach Inc. net income for Q4 climbed to $81.5 million from $11.7 million during the same period last year. Adjusted net income was up 47 percent on a year-over-year basis, totaling $126 million, or 45 cents per diluted share, besting estimates of EPS of 41 cents.
“I couldn’t be more pleased with our team’s execution of the transformation plan over the last two years, as we tracked to our goals in spite of the significant and unanticipated volatility in tourist spending flows, as well as macroeconomic and promotional headwinds,” said Coach Inc. CEO Victor Luis.
Part of Coach’s comeback has involved expanding its offerings, including getting into footwear and apparel. Chief among these efforts was the purchase of the Stuart Weitzman brand last year.
Net sales for Stuart Weitzman totaled $84 million for the fourth fiscal quarter, and $345 million for the entirety of fiscal 2016, in line with Coach’s predictions for the brand as outlined in their third-quarter results.
“We were also very pleased with the overall contribution of the Stuart Weitzman brand for both the quarter and year, which outpaced our original projections,” said Luis. “We look forward to driving additional synergies across the brands—notably in real estate, supply chain and category expansion—while taking an increasing share of the attractive and growing global footwear category.”