Coach posts 4% profit rise in Q4
New York City -- Coach reported Tuesday that net income for the fourth quarter rose 4% to $202.5 million, compared with $195.5 million in the year-ago period.
Revenue surged 9% to $1.03 billion, edging Wall Street estimates. Same-store sales rose 10.1% in North America.
Coach’s performance is in line with overall strength in the luxury category. During the recessionary onslaught, the company pushed sales of handbags priced under $300, but said its average retail price of handbags is now inching back up.
For the year, net income rose 20% to $880.8 million. Revenue rose 15% to $4.16 billion.
Wall Street, however, isn’t responding as positively to the results, as analysts say they have come to expect outperformance by the retailer.