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%.
Second fiscal quarter sales results in each of Coach's primary channels of distribution grew as follows: • Direct-to-consumer sales increased 18% to $799 million from $675 million last year, which included a 19% gain in sales from new and existing Coach stores in North America. North American comparable store sales for the quarter rose 7.0%, with retail stores down 1.1% and factory store sales up 17.7%.
This compares to last year's holiday quarter in which North American comparable store sales rose 25.7% overall, with retail stores up 20.8% and factory store sales up 33.4%. In Japan, sales rose 17% on a constant-currency basis, while dollar sales rose 21% adjusted for a stronger yen. Comparable location sales in Japan rose at a mid-single-digit rate for the quarter.
• Indirect sales increased 37% to $179 million in the second quarter from the $130 million reported for the prior year. Coach enjoyed strong gains at retail for all indirect businesses, including international locations as well as in U.S. department stores.
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