Retailers shift their ad spending from TV, radio and print ads to digital ads.
Internet sales rose 52% for Coach in FY 2007, while web traffic reached 50 million unique visitors. Coach also is rolling out a buy online/pick up in store program for its 300 U.S. stores.
Coach Inc. is reporting solid Internet sales for its just-concluded fiscal year.
During the company’s year-end earnings call with analysts, CEO Lew Frankfort said Coach’s Internet sales rose by 52%. The increase gives Coach, No. 171 in the Internet Retailer Top 500 Guide, 2007 web sales of $82 million, compared with web sales of $54 million in fiscal 2006.
Coach also reported web traffic of 50 million unique visitors in fiscal 2007 and an average session length of about six minutes. “Our Internet business experienced meteoric growth,” Frankfort told analysts.
Though he didn’t provide details, Coach also recently launched a new U.S. multi-channel program that enables customers to make a purchase online and pick up their merchandise at a nearby Coach store within two hours. “This service will support last-minute purchasing and drive many additional Internet visitors into our stores,” Frankfort said. Coach operates about 300 stores in the U.S.
For fiscal 2007, Coach recorded net income of $663.3 million on revenue of $2.6 billion vs. net income of $494.2 million on revenue of $2.03 billion in FY 2006. The web accounted for about 1% of sales in FY 2007.