Luxury retailer Coach on Tuesday reported a fiscal fourth quarter net sales increase of 15% year over year to $1.15 billion and a fiscal 2016 full year sales increase of 7%. That missed analysts estimates for $1.17 billion in revenue.
Coach posted Q4 2016 profit of $82 million, or 29 cents per share, compared to profit of $12 million, or 4 cents per share, in the year-ago period. On an adjusted basis, its net income was $126 million, or 45 cents per share, representing 47% growth year over year, beating analysts’ estimates of 41 cents per share.
North American Q4 same-store sales rose 2%, Coach said, and net sales for its Stuart Weitzman brand totaled $84 million for the quarter.
In a retail environment where luxury sales have been hit on the manufacturing and sales sides by the strong dollar and where off-price retail is among the few bright spots, Coach is swimming against the current. The brand has seen results improve in recent quarters after tamping down outlet sales.
Coach CEO Victor Luis made note of that in a statement, saying,“[W]e elevated brand perception globally. I couldn’t be more pleased with our team’s execution of the transformation plan over the last two years, as we tracked to our goals in spite of the significant and unanticipated volatility in tourist spending flows, as well as macroeconomic and promotional headwinds."
Luis praised the strong Q4 results in North America, adding that the metrics "capped a year where we returned the Coach brand to growth." Luis also called out the company's Stuart Weitzman footwear brand, which has been a surprising boon to its turnaround since Coach bought it in 2015.
"We look forward to driving additional synergies across the brands," Luis said. "Notably in real estate, supply chain and category expansion, while taking an increasing share of the attractive and growing global footwear category.”