The company showed gross profit totaling $906 million, a 5 percent increase, and a net income rise for Coach to $200 million from $170 million.
The Coach brand saw a gross profit of $830 million, up 4 percent from last quarter, while Stuart Weitzman saw a profit of $76 million, up 26 percent compared to last year. Net sales for Stuart Weitzman also increased by 26 percent from $94 million to $118 million in 2016.
Stuart Weitzman reported an increase in expenses primarily from store occupancy costs and marketing campaigns. This comes as no surprise with model Gigi Hadid at the center of Stuart Weitzman’s Spring ’17 campaign.
“We were also thrilled with Stuart Weitzman’s results this quarter as we continued to implement our strategic priorities for the brand,” said Victor Luis, Coach, Inc. CEO. “We advanced our leadership position in fashion boots and booties during the key winter selling season, while driving global awareness and brand relevance through impactful marketing .”
The company maintains its guidance for an increase of low-to-mid single digits.