Stuart Weitzman is proving to have been a smart purchase for Coach, Inc.
The footwear brand, which was purchased by Coach last May, delivered positive sales growth for its parent company during the third quarter of Coach’s fiscal year.
Gross profit for the Stuart Weitzman brand totaled $46 million on both a non-GAAP and reported basis, resulting in a gross margin of 58.2 percent. This helped contribute to an overall postive quarter for Coach, which recorded a total sales increase of 13 percent over the same period last year.
“We were very pleased with the overall contribution of Stuart Weitzman during the quarter, and are excited to announce the purchase of the brand’s Canadian distributor, which is expected to close in the fourth quarter and will have an immaterial impact on this year’s results. Importantly, as we anniversary the acquisition of Stuart Weitzman in May, we see significant potential for the brand longer term and are delighted with its integration, which speaks to our ability to operate as a multi-brand company,” said Victor Luis, CEO of Coach, Inc.
For the rest of FY 2016, Coach forecasts revenue for the Stuart Weitzman brand to be in the area of $340 million, driving Coach’s total revenue growth into the high-single digits on a constant currency basis and adding about $0.12 to earnings per diluted share.