Lew Frankfort, Chairman and Chief Executive Officer of Coach Inc, said, "Once again, company is delighted with their fiscal fourth quarter and full year performance. This quarter's results demonstrated a continuation of the broad based strength they have seen throughout the year, as their market share continued to expand across all channels and geographies. Similarly, fiscal 2005 were another remarkable year for their company, as they posted excellent financial metrics throughout their businesses. The performance reflects the sustainability of their growth strategies and the distinctiveness of their accessible luxury proposition, which continues to be embraced by their loyal consumer base in North America and internationally."
In the fourth quarter, gross margin increased by 90 basis points on a year-over-year basis from 76.7 percent to 77.6 percent, while gross margin for the year expanded from 74.9 percent to 76.6 percent, a 170 basis point increase. This annual improvement was driven by channel mix, product mix and sourcing cost initiatives.
As expected, SG&A expenses as a percentage of net sales were level with prior year in the fourth quarter, at 43.8 percent. For the full year, SG&A expenses as a percentage of net sales declined to 40.3 percent from 41.3 percent a year ago. The operating margin in the quarter reached 33.8 percent, compared with 32.9 percent in the year-ago fourth quarter. For the full year the company's operating margin rose to 36.4 percent from the 33.6 percent margin achieved in fiscal year 2004, a 280 basis point improvement.
marketing@alchempro.com
