Luxury US accessories brand Coach saw profits soar by 14% in the first quarter as consumers looked to update their wardrobes with accessories.
The company reported sales of $1.05bn (£657m) for its first quarter which ended on October 1, a 15% rise compared with $912m (£570m) for the previous year. Net income rose by 14% from $189m (£118m) to $215m (£134m).
Direct to consumer sales, which includes Coach’s Singapore business, helped drive the growth with sales increasing by 17% to $910m (£569m) from $777m (£486m) last year. Like-for-like sales in North America rose by 9.2% in the quarter.
In the quarter operating income reached $322m (£201m) up 13% from the $286m (£179m) reported in the comparative period. Operating margin was 30.7% compared with 31.3% the previous year.
Lew Frankfort, chairman and chief executive officer, said: “Our strong results this quarter once again reflect the strength of our brand proposition and the vitality of the category, as our customers look to update their wardrobes through our lifestyle accessories offering.”
He added: “In North America, we are continuing to grow our share of an expanding market, while in developing geographies we are leveraging the inherent opportunity, investing in distribution and marketing initiatives. Given the current momentum of our business, strength of our product pipeline, breadth of our assortment and shoppers’ strong interest in accessories for gifts and self-purchase, Coach is clearly well positioned for another excellent holiday season.”