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Bagwire Update: Coach Posts Big Sales Gains

Coach Inc. posted double-digit percentage gains in both income and sales for the second quarter ended Dec. 31.

Income for the quarter rose 14.5 percent to $347.5 million, or $1.18 a diluted share, from $303.4 million, or $1 a share, last year. Sales rose 14.6 percent to $1.45 billion from $1.26 billion. North American comparable store sales gained 8.8 percent in the quarter.

Lew Frankfort, chairman and chief executive officer of Coach, Inc., said, “We’re very pleased with the strong sales and earnings growth we achieved once again this holiday quarter. Our performance reflected the strength of our franchise, our broad and diversified product platform and our multichannel, international distribution model.”

Frankfort added that strength in North American sales during the holiday season “indicates that we are continuing to increase our share of an expanding U.S. accessories market.”

The company’s direct-to-consumer sales now include the firm’s Singapore business. In China, nine new locations were opened in the quarter, including a flagship in Hong Kong. In Japan, six new locations were opened.

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