Coach To Close 70 Stores
June 20, 2014
Leather retailer Coach Inc. is developing actions related to a multi-year transformation plan focused on a new global branding strategy.
Coach intends to support these initiatives through organizational efficiencies, the closure of approximately 70 retail stores in North America, updating its global store fleet and realigning inventory levels.
As a result, Coach expects to incur pre-tax charges of approximately $250 million to $300 million. These charges will be related to inventory, organizational efficiency charges, and fleet costs (primarily North America) including impairment, accelerated depreciation and lease terminations.
The timing of the store closures has been determined but could occur through its 2015 fiscal year.
The company reported that total sales for its third quarter ended March 31 declined as weakness in our North American women’s bag and accessories business continued to offset strong growth in men’s, footwear, and robust sales gains in Asian markets and Europe.