Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, announced that its first quarter results to date are tracking ahead of plan. The company now expects that fiscal first quarter sales and earnings for the period ending October 2, 2004 will increase to more than $335 million and at least $0.32 per diluted share, respectively. This compares with prior year's sales of $258 million and earnings of $0.22 per share and represents increases of at least 30% and 45%, respectively. The analysts' consensus estimate is currently $0.31 per share. The company also expects fiscal year 2005 sales of over $1.6 billion and earnings per share of at least $1.71.
Preparing to address investors at the Goldman Sachs Global Retailing Conference in New York later this week, Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, “We have seen robust sales continue throughout the summer and into the start of the fall season across all US business units and with the Japanese consumer worldwide. All of our key performance metrics continue to demonstrate the vibrancy of the Coach brand. And we reaffirm the first quarter comparable store sales guidance presented during our August conference call. Consumers have enthusiastically embraced our transitional and fall offerings, including the updated Soho and Hamptons Leather collections, the new sophisticated Vintage Signature lifestyle collection and the Chelsea handbag group.”
Mr. Frankfort added, “We're confident that our well-received new merchandise offerings, driven by consistent product flow and strong execution, will ensure continued excellent financial results through the important holiday quarter and into calendar 2005. Looking out further, based on the vitality of the Coach brand, the uniqueness of our business model, and the growing US premium accessories category, our prospects for long term future organic growth have never been stronger.”
The company also announced that it repurchased and retired 2,430,362 shares of common stock at an average cost of $39.06 during the first fiscal quarter. At this time, approximately $170 million remains available for future repurchases under the recently expanded program, which expires in August 2007.
