NEW YORK — Demand for Coach Inc.’s on-trend leather accessories fed holiday sales and is contributing to the company’s optimistic outlook on spring.
Citing a 27 percent rise in U.S. sales and a 35 percent sales jump in Japan, the luxury handbag retailer Wednesday lifted its fiscal, second-quarter sales and earnings projections to above analysts’ consensus.
The New York-based company now sees earnings in the quarter ended Jan. 1 of at least 67 cents a share versus a prior forecast of 64 cents. The Wall Street consensus is 66 cents.
Total sales in the quarter were $532 million, up 29.1 percent from $412 million in the prior year. That compares with previous guidance of $505 million, and analysts’ forecast for $515.4 million.
Coach’s complete results for the holiday quarter will be released on Jan. 25.
“Our performance speaks to the vitality of the brand, as we continue to grow market share in a rapidly expanding U.S. premium accessories category,” said Lew Frankfort, chairman and chief executive officer of Coach, in a statement. The company also cited improved gross margins and expense management for the profit guidance increase.
Direct-to-consumer sales in the second quarter came in at $307 million, up 29.5 percent from $237 million last year. Indirect sales were up 29.3 percent to $225 million, for which the company cited strong sales in Japan, U.S. department stores and international wholesale.
Same-store sales in the U.S. jumped 16.5 percent. Retail store sales rose 13.9 percent, while factory store sales gained 20.7 percent.
“Coach is benefiting from its status brand positioning while at the same time being accessible in its price points for the handbag and small leather goods category with little competition,” wrote Piper Jaffray analyst Neely Tamminga in a Wednesday report.
Coach noted in its statement that U.S. comparable retail stores are 55 percent more productive than they were three years ago.
In Japan, along with the 35 percent increase in sales in constant currencies, same-store sales increased in the high-single digits. That was despite what Frankfort called “lackluster category sales.”
“Our results underscore the success of our distribution strategy in Japan, notably the acceleration of flagship openings and the expansions of existing shops,” Frankfort said.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)