Stuart Weitzman served as the shining light for Coach Inc. in the third quarter, earning a gross profit of $50 million, an increase of 8 percent compared to the same time last year. The brand attributes the number to wholesale shipment timing.
Stuart Weitzman net sales marginally increased 1 percent to $80 million, compared to $79 million reported during the same time last year. However, the brand reported an operating income of $4 million or 4.7% of sales, down compared to $5 million or 5.9% of sales during the third quarter last year.
“At Stuart Weitzman, we’re executing on our plan, driving global awareness and brand relevance, and gaining traction with the millennial consumer. The response to spring newness has been particularly strong, and we continue to expect sales to increase at a double-digit pace for both the fourth quarter and the year. We’re also making key brand investments in management and creative talent, as well as infrastructure to support long-term, multi-category growth,” said Coach Inc. CEO Victor Luis.
Net sales for Coach Inc. decreased 4 percent in the third quarter to $995 million, in part due the company’s decision to raise Coach brand’s position within the North American wholesale channel through less promotional events and door closures, which negatively impacted sales growth.
Gross profit for Coach Inc., decreased 1 percent to $706 million. Meanwhile, net income for the period totaled $122 million, with earnings per diluted share of $0.43, a small increase to $112 million with earnings per diluted share of $0.40 during the same time last year.