Handbag maker Coach (COH) is back in the game. The New York-based design house achieved net sales of $1.15 billion in the fourth quarter—an increase of 15 percent—thanks to a pickup in its North American direct business as well as double-digit growth in Mainland China and Europe. As such, net income increased from last year’s $12 million, with earnings per diluted share of 4 cents, to $82 million and 29 cents per diluted share. Coach also announced plans to cut about 25 percent of its North American wholesale locations in fiscal 2017, as it continues to reduce markdown allowances and repair its brand image.
The first quarter of fiscal 2017 was a disappointing one at Michael Kors (KORS). Comparable store sales decreased 7.4%, while sales in its wholesale division declined 7 percent to $394.4 million and licensing revenue plunged 20.9% to $30.6 million. Though retail net sales rose 7.6% to $562.9 million, the company admitted this was driven by the 221 new stores that opened since the end of Q1 2016, and barely moved the needle on total revenue, which increased 0.2% from $986 million to $987.9 million. As a result, profits fell to $147.1 million or 83 cents per diluted share, compared to last year’s $174.4 million or 87 cents per diluted share.
South Carolina’s Delta Apparel (DLA) suffered a sales decline of 8.8% in its basics segment in the third quarter, down from $79 million to $72.1 million, driven by a 10 percent decrease in activewear as basic tees and private label performed poorly. At the same time, Delta’s branded segment achieved net sales of $39.5 million, thanks to strong sell-through of Salt Life’s Spring 2016 collection, but a soft retail environment impacted sales at Soffe and Junkfood. To that end, the company’s total net sales fell from $120.53 million to $111.55 million in the quarter. Profits were sliced down from $4.4 million (55 cents per diluted share) to $2.5 million (32 cents per diluted share).
Chinese e-commerce company JD.com said its net revenues for the second quarter of 2016 increased 42 percent to reach 65.2 billion yuan, or $9.8 billion. This helped the Beijing-based e-tailer narrow its net loss by 74 percent, from 510.4 million yuan ($76.9 million) to 132.1 million yuan ($19.9 million).
Xcel Brands, which owns and manages the Isaac Mizrahi, H Halston and C. Wonder brands, reported a 44 percent increase in total revenue to $9.1 million in the second quarter of fiscal 2016, compared to $6.3 million in the prior year’s period. This was mainly down to a jump in licensing revenue, as e-commerce sales fell by more than half. The company’s net loss in the three months ended June 30 was $0.1 million, compared with a $2.1 million profit or 13 cents per diluted share a year ago.