Coach Inc, a leading marketer of modern classic American accessories, announced an increase of 34 percent in earnings per diluted share to $0.28 for its third fiscal quarter ended April 1, 2006, up from $0.21 per diluted share a year ago. These results were ahead of the analysts' consensus estimate of $0.27 per share.
In the third quarter, net sales were $498 million, 20 percent higher than the $416 million reported in the same period of the prior year.
On a constant-exchange-rate basis, net sales increased 23 percent in the third quarter, excluding the negative currency effects of 3 percent from translating foreign-denominated sales into U.S. dollars. Net income rose 35 percent to $109 million, compared with $81 million in the prior year.
Quarterly operating margin rose to 33.2 percent in the current period, a 140 basis point improvement from the 31.8 percent reported for the prior year. During the quarter, gross profit rose 20 percent to $390 million from $325 million a year ago.
For the nine months ended April 1, 2006, net sales were $1.6 billion, up 24 percent from the $1.3 billion reported in the first nine months of fiscal 2005.
On a constant-exchange-rate basis, net sales increased 26 percent, excluding the negative currency effects of 2 percent from translating foreign-denominated sales into U.S. dollars. Net income rose to $377 million, up 40 percent from the $269 million reported a year ago.
During the third quarter of fiscal 2006, the company opened three U.S. retail stores - all in new markets for Coach - and one factory store.
marketing@alchempro.com
