Shares of Coach Inc. fell 2.46 percent on Tuesday as investors took issue with the company's decision to hold off on guidance for fiscal year 2009, even though third-quarter results beat Wall Street's expectations by 1 cent.Lew Frankfort, chairman and chief executive officer, said on a conference call with Wall Street analysts that "providing guidance at this time [would] require a level of false precision." He explained the company is looking forward to a good year, with double-digit gains on the top and bottom line. He told WWD that he'd "rather wait three months more to get a better sense of where we are in July when we begin the year."For the three months ended March 29, the company said income rose 8.3 percent to $162.4 million, or 46 cents a diluted share, from $150 million, or 40 cents, in the same year-ago quarter. Sales rose 19.1 percent to $744.5 million from $625.3 million, while comps gained 9 percent.For the nine months, income rose 13.2 percent to $569.5 million on a 22.4 percent gain in sales to $2.40 billion. Frankfort, who was among the first to call the current slowdown a consumer-led recession, said, "The consumer in March is more pessimistic than she was in January. Most consumers believe the economy is getting worse."He said the sales environment will continue to be a tough one, and acknowledged that he "has no idea when it will let up. I expect it to last at least through the calendar year. We don't expect it to improve during holiday."Still, Coach is one of the few retailers that is still executing according to its existing plans. The accessories firm will still open 40 retail stores in the coming year. It also will test a new store format called "the gallery" in three upscale malls, beginning with Short Hills, N.J. The gallery format creates more room to showcase the entire Coach collection, from handbags to fragrance, scarves, men's and jewelry.According to Frankfort, "We are keeping to our plan on opening stores. The stores are extremely profitable. There is no change in the number we will open internationally either. Our business is doing very well."
At the end of the quarter, Coach operated 287 full-price stores and 101 factory stores in North America, and 147 locations in Japan. The company still believes the North American market can easily support 500 retail stores, including up to 20 in Canada.The company is projecting fourth-quarter earnings per share of 50 cents on sales of $780 million, both up 20 percent from year-ago levels. For the full year, Coach expects sales of $3.18 billion, with diluted EPS rising 22 percent to $2.06.
“I grew up in New York but I hadn’t really experienced the city in any type of touristy way…This was probably the first museum I really explored and took the time to see,” said @haileybaldwin of the @whitneymuseum. On Tuesday night, Baldwin was joined by Jemima Kirke and more at the annual Whitney Museum Gala and Studio Party, which honored Lorna Simpson, Joanne Leonhardt Cassullo and Beth Rudin DeWoody. See more photos on WWD.com. #wwdeye (📷: @lexieblacklock)
Displayed starting this week at the @fashiontextilemuseum: An exhibition on designer @orlakiely titled “Orla Kiely: A Life in Pattern,” which spans two decades and contains more than 150 pieces. “I want people to come away loving pattern and print. It’s something that makes you feel so good,” said the designer during a preview of the exhibit. Also on show are mood boards, samples, sketches and more. Head to WWD.com to see more photos. #wwdfashion
Exclusive: @dsquared2 signs fragrance licensing agreement with Euroitalia, with the first effort of the new partnership being unveiled in September. The brand will launch two scents – one for men and one for women – in Italy. Read our interview with designer Dean and Dan Caten on WWD.com. #wwdbeauty #wwdnews (📷: @zefashioninsider)
@louisvuitton has officially renewed Nicolas Ghesquière’s contract as artistic director of women's collections. "I am very pleased to open the next chapter of the story I started with Louis Vuitton almost 5 years ago," said Ghesquière, who first signed on to design the French luxury brand's women's line in 2013. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @giovanni_giannoni_photo)
“I learned then and there that I had to figure out a way in life to maintain and preserve my sense of pride when I felt good about what I did or what I represented or created,” said @saintrecords on how being bullied for wearing capri pants inspired her to be the artist she is today. Knowles was at the 70th Parsons Benefit last night where she outbid the room for a Dapper Dan customized @gucci experience. #wwdeye (📷: @lexieblacklock)
“There’s this amazing braintrust of people who know the whole universe so well. So we talked to them and they gave us more input,” said actor Alden Ehrenreich on playing the young Han Solo in “Solo: A Star Wars Story.” The cast was at NYC’s SVA Theatre last night for an advanced screening of the film, which hits theaters this week. #wwdeye #starwars #hansolo (📷: @aurorarosedecrosta)
@asaprocky spent nearly two hours in a Plexiglas box Sunday night at @sothebys putting himself through a series of “tests” to demonstrate the process of completing his new album called “Testing.” Get all the details and see all the pictures on WWD.com. #wwdeye
“I’ve struggled my whole life to find a bathing suit that fits me that doesn’t look like a maternity bra. I’m proud of the line because it’s an accurate representation of me rather than me putting on someone else’s clothes,” says @atlantabean of her swimwear collaboration with @piaarrobio, LPA X ATL. The two decided on a swimwear collab and increased the industry standard size for the pieces. Read more about the line — and our interview with de Cadenet Taylor and Arrobio — on WWD.com #wwdfashion (📷: Dan Doperalski)