Coach Inc. continued to build on gains made this summer during its fourth quarter with a positive result in its Q1 report, released Tuesday.
The luxury leather company reported net income rose 22 percent during Q1, up to $117 million. There was also good news on the retail front, with the company reporting that North America comparable store sales rose 2 percent year-over-year.
“We are pleased with our performance in the quarter, highlighted by continued positive comparable store sales in North America and growth internationally,” said Coach CEO Victor Luis.
Stuart Weitzman, which Coach purchased in 2015, delivered another quarter of solid sales growth, totaling $88 million compared to the $87 million in net sales reported a year ago. Gross profit for the brand totaled $51 million on a reported basis, up 3 percent from last year.
“At Stuart Weitzman, we’re making the key investments in management and creative talent, as well as infrastructure to support long-term, multi-category growth,” said Luis. “We’re driving global awareness and brand relevance, gaining traction with the millennial consumer. Importantly, we continue to expect Stuart Weitzman’s sales to increase at a double-digit pace this fiscal year.”
Coach Inc. maintained its guidance for the remained of the year, saying it expects revenue growth in the low-to-mid single digits.