Coach Board authorizes new $500m share repurchase program
09 May '06
2 min read
Coach Inc, the high-end handbag and accessories seller, announced that its Board of Directors has authorized the repurchase of up to $500 million of its outstanding common stock by the end of June 2007.
Pursuant to this new program, purchases of shares of the company's common stock will be made from time to time, subject to market conditions and at prevailing market prices, through open market purchases.
Repurchased shares of common stock will become authorized but unissued shares, and may be issued in the future for general corporate and other purposes. The company may terminate or limit the stock repurchase program at any time.
Lew Frankfort, Chairman and CEO of Coach Inc, said, "The stock repurchase program is designed both to offset share issuances under our employee compensation plans, as well as to increase economic value for shareholders. Coach's excellent financial condition allows us to take advantage of opportunities to purchase our securities at attractive prices, particularly considering our outstanding prospects."
Concurrently, the company announced that it has just completed the current $250 million repurchase program that was put into place in May 2005. It has acquired a total of 7,609,440 shares of its outstanding common stock under this program, at a cost of approx. $250 million, or an average cost of $32.89 per share.
Coach Inc, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, sunwear, and related accessories.
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