Luxury handbag maker Coach Inc. The net income for the fourth quarter rose by 34 per cent of the demand for assets in North America and China, the company said on Tuesday.
The coach said he plans to his classification of the men and faster growth in China, in the fiscal year that began last month to expand. It has reduced the price by 10 percent in North America, consumers reduced their spending in the weak economy.
CEO Lew Frankfort said selling handbags in the new sweet spot of $ 200 to $ 300 contributed quarterly revenues by 6.3 percent in the Coach stores in North America with more than a year.
They sell bags of 25 percent of the products in general in these shops, but also reduces traffic on foot.
Lower prices were "clearly in response to consumers," said Frankfurt.
In the third quarter ended July net income was $ 195,500,000, or 64 cents per share. This compares with $ 145,800,000, or 45 cents per share last year. Analysts surveyed by Thomson Reuters expect, on average, 56 cents per share.
Revenue rose 22 percent to $ 950,500,000. Analysts expected $ 888,900,000.
A week in the quarter, however, has 8 cents to $ 70,000,000 and net income. Without that, the results of the coach has met the expectations of analysts.
"The results are somewhat disappointing side, which were masked by the additional week," said Brian Sozzi, an analyst at Wall Street Strategies. "I still think the car is increasing, it is not simply the growth of the company were."
For the year, net income increased 18 percent to $ 734,900,000 or $ 2.33 per share, compared with $ 623,400,000 or $ 1.91 per share.
Revenue rose 12 percent to $ 3,610,000,000th
Frankfurt, said it expected a net profit for the year and sales growth "at a rate of two bodies" in 2011.
Frankfurt, said the company started a major expansion of the lines of men for the year 2011. The company expects to represent handbags leather handbags and other accessories for men, 10 percent of its sales in the coming years, to 3-4 percent.
The coach expects his share of the population $ 4000000000 men total premiums and small leather goods market to increase, which represents about 15 percent of the total market premiums.
It is planning branches in 10 men in North America in fiscal year 2011 show about one third of the shops will open. In Japan, where the coach says that men are more likely designed the brand and fashion boutiques full of rich men play a greater role.
Meanwhile, the coach, to double its growth in China, where the income in the stores to open at least a year in the quarter to accelerate. It plans 30 stores in fiscal 2011, compared with 13 in 2010.
The coach expects its raw material costs and labor costs in China to rise in the second half of the year and expanding production in Vietnam, India and elsewhere in response.
Shares fell $ 1.33, or 3.5 percent closed at $ 37.10 Tuesday. The stock has traded between $ 27.21 and $ 44.37 last year.