Oct. 21, 2008

Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, today announced an increase of 7% in earnings per diluted share to $0.44 for its first fiscal quarter ended September 27, 2008, up from $0.41 per diluted share a year ago. This increase in earnings from the prior year's first quarter reflected an 11% gain in net sales.In the first quarter, net sales were $753 million compared with the $677 million reported in the same period of the prior year. Net income declined 6% to $146 million, or $0.44 per diluted share, compared with $155 million, or $0.41 per diluted share in the prior year.

For the first fiscal quarter, operating income totaled $233 million, down 2% from the $239 million reported in the comparable year ago period, while operating margin declined to 31.0% as compared to 35.3% reported for the prior year. During the quarter, gross profit rose 8% to $558 million from $518 million a year ago. As expected, gross margin was 74.2% versus 76.6% a year ago. SG&A expenses as a percentage of net sales were 43.1%, compared to the 41.3% reported in the year-ago quarter.

For the fiscal year 2009, the company now expects to achieve sales growth of about 10%, revised from its previous estimate of 13%, to about $3.5 billion. The company is maintaining its earnings per share guidance of about $2.25, an increase of about 10%. The company estimates second fiscal quarter sales of about $1.05 billion, representing a year-over-year increase of about 8%, and earnings per diluted share of $0.77. The company also announced that during the first fiscal quarter, it repurchased and retired 10,529,598 shares of its common stock at an average cost of $28.53. At the end of the period, $863 million remained available under the company's repurchase authorization.

 

Aug. 25, 2008

Coach Establishes New $1 Billion Share Repurchase Program
Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, today announced that its Board of Directors has authorized the repurchase of up to $1 billion of its outstanding common stock by June 26, 2010. Pursuant to this new program, purchases of shares of the company's common stock will be made from time to time, subject to market conditions and at prevailing market prices, through open market purchases. Repurchased shares of common stock will become authorized but unissued shares, and may be issued in the future for general corporate and other purposes. The company may terminate or limit the stock repurchase program at any time.

Concurrently, the company announced that it has just completed its current $1 billion repurchase program, which was put into place in November 2007. The company acquired a total of 31.8 million shares of its outstanding common stock under this program, at an average cost of $31.42 per share, including a total of 5.7 million shares at an average cost of $28.45 since it announced its fourth quarter earnings last month.

Jul 29, 2008

Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, today announced a 20% increase in earnings per diluted share for its fourth fiscal quarter ended June 28, 2008. For the full fiscal year, earnings per share increased to $2.06, up 22% versus the prior fiscal year. Including a one-time net gain of $0.12 for the quarter and $0.11 for the year, earnings per share totaled $0.62 and $2.17, respectively.

During the fourth quarter, net sales were $782 million, 20% higher than the $652 million generated in the prior year's fourth quarter. Excluding the positive currency effects from translating foreign-denominated sales into U.S. dollars, net sales increased 16% in the fourth quarter. Net income rose 8% to $172 million, or $0.50 per diluted share, compared with $159 million, or $0.42 per share, in the prior year.

For the fiscal year 2008, net sales were $3.18 billion, up 22% from the $2.61 billion recorded in fiscal year 2007. Excluding the positive currency effects from translating foreign-denominated sales into U.S. dollars, net sales increased 20% for the fiscal year. Net income rose to $742 million, up 17% from the $637 million earned in the prior year. Diluted earnings per share rose 22% to $2.06, versus $1.69 a year ago. Including the impact of the one-time items noted, net income rose 34% to $214 million in the quarter and 23% to $783 million for the fiscal year.

For the full year, before one-time items, operating income totaled $1.18 billion, up 19% from the $993 million reported in the comparable year ago period, while operating margin was 37.1% versus 38.0% reported for the prior year. During the year, gross profit rose 19% to $2.41 billion from $2.02 billion a year ago. Gross margin was 75.7% versus 77.4% a year ago. SG&A expenses as a percentage of net sales improved by 80 basis points to 38.6%, compared to the 39.4% reported in FY07.

During the quarter, the company recorded several one-time items. These consisted of tax adjustments related primarily to the favorable settlement of a tax return examination which decreased Coach's provision for taxes by $50.0 million and increased net interest income by $10.7 million. In addition, the company created a charitable foundation, which increased expenses by $20 million. Finally, the resultant higher net income led to a $12.1 million increase in variable expenses. Collectively, these one-time items increased earnings by $41.0 million after tax.

May 28, 2008

Coach Opens First Hong Kong Global Flagship Store
Coach, Inc. (NYSE: COH), a leading American design house of modern luxury accessories, today announced the opening of a global flagship store within Hong Kong's most prestigious Central shopping district. The store is conveniently located at the intersection of Queen's Road Central and D'Aguilar Street, at the start of Lan Kwai Fong.

May 28, 2008

Coach Announces Agreements to Acquire Retail Businesses in China, Hong Kong and Macau from ImagineX
Coach, Inc. (NYSE: COH), a leading American design house of modern luxury accessories today announced that it had completed agreements to acquire the Coach domestic retail businesses in Hong Kong, Macau and Mainland China from its current distributor, the ImagineX group. This acquisition will allow Coach to directly manage the significant growth opportunity with the Chinese consumer by gaining control of its distribution in this region. The agreements provide for a phased buyout of the current Coach retail businesses in Hong Kong, Macau and China over the next year. Thibault Villet, Coach's President, Greater China, will lead the operations of these businesses.

Mar 12, 2008

Coach Appoints Jerry Stritzke as an Executive Officer; Announces Contract Extension for Reed Krakoff
Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, today announced the appointment of Jerry Stritzke, as an Executive Officer, effective March 17, 2008. In addition, the Company noted that he will succeed Keith Monda, Coach's current President & Chief Operating Officer, upon his retirement at the end of this fiscal year - June 28, 2008.

Mr. Stritzke joins Coach from Limited Brands, where he most recently held the position of Chief Operating Officer and Co-Leader of Victoria's Secret, which included oversight for Victoria's Secret Stores, Victoria's Secret Direct, Victoria's Secret Beauty and Pink. Prior roles at Limited Brands included Chief Executive Officer of Mast Industries, a wholly-owned subsidiary of the Limited and a sourcing organization and supplier of merchandise for Victoria's Secret, Express, Abercrombie & Fitch and Limited Stores.

Apr 22, 2008

Coach Reports Third Quarter Earnings of $0.46, up 19% on a 19% Sales Increase
Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, today announced an increase of 19% in earnings per diluted share to $0.46 for its third fiscal quarter ended March 29, 2008, up from $0.39 per diluted share a year ago. This substantial increase in earnings from the prior year's third quarter reflected a 19% gain in net sales. In the third quarter, net sales were $745 million compared with the $625 million reported in the same period of the prior year. Net income rose 10% to $162 million, or $0.46 per diluted share, compared with $147 million, or $0.39 per diluted share in the prior year.

For the quarter, operating income totaled $257 million, up 13% from the $227 million reported in the comparable year ago period, while operating margin was 34.5% versus 36.2% reported for the prior year. During the quarter, gross profit rose 15% to $558 million from $486 million a year ago. Gross margin was 75.0% versus 77.8% a year ago, impacted primarily by the sharp rise of the yen over the period, and, as expected, by both the continued promotional environment and channel mix. SG&A expenses as a percentage of net sales improved by 100 basis points to 40.5%, compared to the 41.5% reported in the year-ago quarter, as the company was able to leverage expenses - notably selling and distribution costs - on the higher sales base.

Jan. 31, 2008

Coach to Enter Russian Market; Announces Distributor Agreement
Coach Inc. , a leading marketer of modern classic American accessories, today announced plans to enter the Russian market through an arrangement with Jamilco, a domestic distributor with significant luxury brand experience. The company expects to open at least 15 locations in Russia over a five year period, initially concentrating development in Moscow and St. Petersburg. The first free-standing Coach store is expected to open in April 2008 and will be located at the Seasons Kutuzovsky shopping center in central Moscow. The company also expects to open in the GUM development on Red Square in the fall of this year.

Jan 24, 2008

Coach to Open First Hong Kong Global Flagship Store
Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, together with Imaginex, its distribution partner, today announced the opening of a global flagship store within Hong Kong's most prestigious shopping district. The store is expected to open in the Summer of 2008 and will be centrally located at the intersection of Queens Road Central and D'Aguilar Street, at the start of Lan Kwai Fong.

Jan. 23, 2008

Coach Reports Second Quarter Earnings of $0.69, up 21% on a 21% Sales Increase
Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, today announced an increase of 21% in earnings per diluted share on a continuing operations basis to $0.69 for its second fiscal quarter ended December 29, 2007, up from $0.57 per diluted share a year ago. This substantial increase in earnings from the prior year's second quarter reflected a 21% gain in net sales. In the second quarter, net sales were $978 million compared with the $806 million reported in the same period of the prior year. Net income rose 18% to $252 million, or $0.69 per diluted share, compared with $214 million, or $0.57 per diluted share in the prior year.

For the second fiscal quarter, operating income totaled $403 million, up 18% from the $341 million reported in the comparable year ago period, while operating margin was 41.2% versus 42.3% reported for the prior year. During the quarter, gross profit rose 19% to $737 million from $621 million a year ago. Gross margin was 75.4% versus 77.1% a year ago, impacted by the promotional environment in North America as well as currency fluctuations. SG&A expenses as a percentage of net sales declined 60 basis points to 34.2%, compared to the 34.8% reported in the year-ago quarter, as the company was able to leverage expenses - notably selling and distribution costs - on the higher sales base.

For the six months ended December 29, 2007, net sales were $1.7 billion, up 24% from the $1.3 billion reported in the first six months of fiscal 2007. Net income rose to $407 million, up 23% from the $330 million reported a year ago, while earnings per share rose 24% to $1.09 from $0.88. Also noteworthy is that for the full calendar year, Coach achieved sales of $2.9 billion, up 27% from calendar 2006, while earnings per share totaled $1.90, up 33%.