Coach’s fiscal 4Q17 top line
For fiscal 4Q17, Coach (COH) reported total revenues of $1.13 billion, which is 1.8% lower than its revenues in fiscal 4Q16. The top-line numbers fell considerably short of the Wall Street expectation of $1.51 billion.
The sales decline of 60 basis points was due to Coach’s strategic decision of door closures and fewer promotional days in North America. The calendar-related shift also impacted the top line. Excluding the additional week in the fourth quarter of 2016, sales improved 6% on a reported basis.
Coach reported a 4% increase in its North America comps (comparable same-store sales), compared with the expectation of a 3.6% rise.
Victor Luis, CEO (chief executive officer) of Coach, noted: “Our strong fourth quarter results—in which we achieved mid-single-digit North America comparable store sales for the Coach brand and drove solid growth at Stuart Weitzman—capped an excellent fiscal 2017 performance.”
Fiscal 2017 performance
For fiscal 2017, Coach’s top line stood flat at just under $4.5 billion. Excluding the 53rd week from its fiscal 2016 results, net sales were up 2%. Strategic decisions negatively impacted sales growth by ~150 basis points, and Coach missed its top-line expectations in three of the four quarters.
By comparison, handbag rival Michael Kors (KORS) reported a 4.6% YoY (year-over-year) decline in its fiscal 2017 sales, totaling just under $4.5 billion. The company exceeded the Street’s expectations in three of the quarters.
Investors looking to invest in Coach through ETFs can choose the iShares Morningstar Mid-Cap Value ETF (JKI). Coach has a weight of ~0.77% in JKI.