Coach Earnings Pop 34% on Strong Sales
Net income for the quarter, which ended July 3, rose to $195.5 million, or 64 cents per share, from $145.8 million, or 45 cents per share, a year earlier. Excluding items, Coach said it would have earned 56 cents per share, in line with analysts' estimates.
The New York-based designer reported sales rose 22% to $950.5 million. Without the extra week in the quarter, Coach said sales would have been up 13%. Analysts had estimated sales for the company of $889.2 million.
Comparable North American sales rose 6.3%, and China's results continued to be robust, Coach said, with sales at stores open at least a year rising at a double-digit rate.
"I'm very pleased with our fiscal fourth quarter and full-year results," said Chairman and CEO Lew Frankfort. "Our results reflect the growing recognition of the Coach brand globally, and consumers' strong response to our product offering. It was also a year of many milestones, including the first full year of direct operation of our stores in China -- where sales at retail doubled -- the opening of our first stand-alone Men's stores, and our expansion into Western Europe, as we laid the groundwork for strong top and bottom line results in the years ahead."
The company said it expects to increase sales and per-share profit this year at a double-digit pace.
Coach shares climbed more than 1% in premarket trading.