Coach reports higher earnings for Q2

24 Jan '06

5 min read

For the six months ended December 31, 2005, net sales were $1.1 billion, up 26 percent from the $876 million reported in the first six months of fiscal 2005. Net income before option expense rose to $283 million, up 40 percent from the $202 million reported a year ago. Including option expense in both periods, net income rose 43 percent to $268 million from $188 million.

Frankfort added, "It's worth mentioning that U.S. full price comparable store sales have increased at a double-digit rate in each of the last 15 consecutive quarters, which clearly demonstrates the sustainability of our growth. Further, in U.S. department stores, POS sales rose over 25% from prior year levels in the quarter. Clearly, Coach's share of the fast-growing U.S. premium handbag and women's accessory market continues to expand across all channels."

"In addition, we're extremely pleased with the 20% growth in sales in constant currency in Japan this quarter, as we continue to rapidly grow our market share in this important market for Coach. These results underscore the success of our distribution strategy in Japan, notably the acceleration of retail openings and the expansion of existing shops."

During the second quarter of fiscal 2006, the company opened four US Coach retail stores and closed one factory store, bringing the total to 203 retail stores and 84 factory stores at December 31, 2005.

In addition, three retail stores expanded during the quarter, including the 595 Madison Avenue Coach flagship, which reopened in time for the holiday season. In Japan, Coach opened two new retail locations and expanded two additional locations as well.

More Coach Inc News... More Fashion News - United States Of America...