Coach Inc is a leading marketer of modern classic American accessories, announced an increase of 40 percent in earnings per diluted share to $0.34 for its first fiscal quarter ended September 30, 2006, up from $0.24 per diluted share a year ago.
This substantial increase in earnings from the prior year's first quarter reflected a 23 percent gain in net sales combined with operating margin improvement.
In the first quarter, net sales were $554 million compared with the $449 million reported in the same period of the prior year. Net income rose 34 percent to $126 million, or $0.34 per diluted share, compared with $94 million, or $0.24 per diluted share in the prior year.
These results were ahead of the analysts' consensus estimate of $0.31 per share and the company's guidance of $0.30.
Quarterly operating income totaled $198 million, up 36 percent from the $145 million reported in the comparable year ago period, while operating margin rose to 35.7 percent, a 340 basis point improvement from the 32.3 percent reported for the prior year. During the quarter, gross profit rose 24 percent to $425 million from $341 million a year ago.
Gross margin expanded by 70 basis points from 76.0 percent to 76.7 percent, driven by gains from product mix shifts and supply chain initiatives.
SG&A expenses as a percentage of net sales declined 270 basis points to 41.0 percent, compared to the 43.7 percent reported in the year-ago quarter.
marketing@alchempro.com
