For its second fiscal quarter ended December 27, 2014, sales drove down 14 per cent from a year earlier quarter at Coach Inc, a New York design house of modern luxury accessories and lifestyle collections.
Coach said it reported sales for the second quarter of fiscal 2015 at $1.22 billion compared with $1.42 billion in the same period of the previous year, down 14 per cent.
For the second quarter of fiscal 2015, on a non-GAAP basis, operating income totaled $299 million as against $436 million reported in the year-ago period.
While operating margin in the same period stood at 24.5 per cent versus 30.7 per cent, reported for the previous year.
During the reporting quarter, on a non-GAAP basis, gross profit slid down to $841 million from $983 million a year ago, and gross margin was 69.0 per cent vis-à-vis 69.2 per cent in the year ago quarter.
SG&A expenses as a percentage of net sales totaled 44.4 per cent on a non-GAAP basis, as compared to 38.5 per cent posted in the same quarter from fiscal 2014.
During the second quarter of fiscal 2015, the company recorded charges of $20 million under its multi-year transformation plan.
These charges consisted primarily of accelerated depreciation for renovations, lease termination costs related to store closures and organizational efficiency costs.