June 2009 -- Slow consumer spending contributed to a 29% profit drop for handbag and accessories manufacturer Coach Inc.'s third quarter. The company posted net income of $114.9 million, or 36 cents a share, compared with $162.4 million, or 46 cents a share, during the year-earlier period.
During the quarter, the company incurred three one-time charges, including expenses related to corporate staff cuts, the closing of four North American retail stores and the shutdown of the company's sample-making facility in Italy.
Coach will continue to invest in emerging markets, including China, said Chairman and CEO Lew Frankfort in an April 21 statement.
"Our roadmap for long-term growth is intact," he said. "We remain committed to balancing our growth strategies with the appropriate level of caution around spending, given the environment. At the same time, we will continue to implement our distribution plans to capture the emerging market opportunity with a particular focus on China, where our brand is taking hold and the category is developing rapidly. To this end, we have just completed the acquisition of Mainland China retail locations, taking control of our destiny in the region.
