US premium accessories label Coach posted income gains of 3.6% in its fourth quarter results yesterday, along with gains in total annual profits, according to reports.
For the fourth quarter, ending July 2, its income rose to $202.5m (£124.39m) on $195.5m (£120m) last year. Sales meanwhile, gained 8.5% reaching $1.03bn (£632.71m)
Shares of Coach Inc, meanwhile, fell 6.5% to $61.03 following the brand’s announcement that its gross margin for the current fiscal year would remain level with the year before.
Coach’s income gains were attributed to growth in the number of its US stores, including new men’s boutiques and nine factory stores.
Asia has also been a major area of growth. Coach now has 66 locations in the region and is said to be adding more. According to reports this week it also signed distribution deals for Brazil and Vietnam. It has a direct retail operation in Singapore and will do the same in Malaysia by the end of the 2012 financial year.
Ongoing challenges for the company include inflation in labour costs in Japan and the rising material prices but chief financial officer Michael Devine said the company was “optimistic” about maintaining its margins going forward.