Evaluating Coach’s 3Q17 sales
Coach (COH) reports revenues under two major segments: Coach and Stuart Weitzman. The Coach brand, which the company reports under its North America and International segments, accounts for more than 90% of its top line.
The company reported a 3.7% YoY (year-over-year) decline in 3Q17 sales. Below, we’ll evaluate the performance of Coach Brand’s North America operations.
North America Coach brand
The Coach brand’s North America sales, which accounted for 48% of the company’s top line, fell 5% YoY to $474 million. However, Coach’s North America comps (comparable same-store sales) remained positive, rising 3% in fiscal 3Q17.
Total North America direct-to-customer sales fell 2%, primarily due to the change in the fiscal calendar on non-comparable sales. Competitor Kate Spade (KATE) reported a 2.4% YoY fall in direct-to-consumer comparable sales in its last reported quarter.
Department store sales
Coach’s department stores sales fell ~40% as the company pulled out of around 250 department stores. Coach is realigning its resources away from malls and department stores and toward the online channel. It has reduced its departmental store count by around 25% in the past year.
Notably, investors looking to invest in Coach through ETFs can choose to invest in the First Trust RBA Quality Income ETF (QINC). Coach has a weight of 2.3% in QINC.
Continue to the next part for a closer look at the fiscal 3Q17 performance of Coach International and Stuart Weitzman.