Luxury brand Coach Inc. has seen major declines over the past year, according to a press release describing the company's fourth-quarter earnings. Coach saw sales of $1.14 billion worldwide in the quarter, down 7 percent from the same period last year. For the full year, sales were down 5 percent to $5.81 billion.
"The fourth quarter capped a challenging year for the company, most notably in the North America women’s bag and accessory business," said CEO Victor Luis in the statement. "However, it was also a year of many accomplishments for Coach, including the successful integration of our retail businesses in Europe, surpassing $500 million in sales in China, and driving men’s to about $700 million in sales globally. Most importantly, we laid the groundwork for our brand transformation."
The men’s fashion line is one of the pieces Coach is hoping will help bring the brand back to what it once was. As Jenni Avins reported in Quartz, the menswear line only makes up about 14 percent of Coach’s revenues to date. But they expect that number to grow significantly in the next five years, especially as the company continues to target the Chinese market, where men’s fashion makes up the bulk of the luxury spending.
While sales in North America fell, the company saw 20 percent growth in China, bringing in more than $500 million in sales for the quarter.
Right now, the company only offers a men’s shoe collection—with another planned to launch in the fall—but there are plans in the works to have a full clothing line. "We’re launching a full collection," Greg Unis, who oversees global merchandising at Coach, told Quartz. "We’re not far off from its imminent future."