Coach Q4 profit soars 31%, raises guidance for FY07
01 Aug '06
4 min read
Coach Inc, a leading marketer of modern classic American accessories, announced a 33% increase in earnings per diluted share for its fourth fiscal quarter ended July 1, 2006.
This substantial increase in earnings from the prior year's fourth quarter reflected a 23% growth in net sales, combined with significant operating margin improvement.
For the full fiscal year, net sales rose 23% and net income increased 38% versus the prior fiscal year.
During the fourth quarter, net sales were $514 million, 23% higher than generated in the prior year's fourth quarter. Net income rose 31% to $118 million, or $0.31 per diluted share, compared with $90 million, or $0.23 per share, in the prior year. This was ahead of the analysts' consensus estimate of $0.29 for the quarter.
For the fiscal year 2006, net sales were $2.1 billion, up 23% from the $1.7 billion recorded in fiscal year 2005. Net income rose to $494 million, up 38% from the $359 million earned in the prior year. Diluted earnings per share rose 38% to $1.27, versus $0.92 a year ago, and ahead of analysts' estimates of $1.25.
Lew Frankfort, Chairman and CEO of Coach Inc, said, "I'm extremely pleased with our fiscal fourth quarter and full year results. This quarter's performance demonstrated a continuation of the strength we have seen throughout the year, as our market share continued to grow across all channels and geographies. Our performance also reflects the vibrancy of the premium accessory category, notably in the US, where we continue to see double-digit growth."
marketing@alchempro.com
