Coach also noted that the buyout of its joint venture partner in Coach Japan at fiscal year end allowed the company to capture a foreign tax benefit for the year. This benefit was recorded in the fourth quarter and brought the full year to the lower effective appropriate annual rate. The company also noted that this benefit, associated with the tax structure in Japan for income earned and reinvested in-country, will be ongoing.
At the end of the fiscal year the company had cash and marketable securities of $505 million, as compared with $564 million a year ago. It should be noted that the 2005 fiscal year end cash balance reflects the buyout of Sumitomo's interest in Coach Japan and the repurchase of $265 million of Coach stock during the fiscal year.
Frankfort added, "The strength of our fourth quarter results was reflected in all of their businesses. Their successful fresh and fun offerings drove performance as they continued to improve productivity through monthly product flow and innovation. Introductions this spring included Vintage Signature Tie Dye and Straw Boxy Totes. Optic Signature was offered for the first time in sophisticated Soho silhouettes in new colors. They also introduced an expanded shoulder tote group and a fresh interpretation of the ever popular Signature Patchwork. Lastly, Hamptons Weekend, in its third successful year, was updated and expanded with new colors and silhouettes, including Signature Scribble."
"In addition, their surging factory store business reflects a combination of a strengthened merchandising offering, Coach's unique positioning and the overall vitality of the premier centers in this channel."
marketing@alchempro.com
