"In Japan, they were particularly pleased with the outstanding sales and market share growth in FY05, which they achieved despite a lackluster environment. They rapidly expanding sales in Japan truly reflect the success of our distribution strategy - notably the acceleration of flagship openings, along with the expansion of highly productive shop-in-shops."
During the fourth quarter of fiscal 2005, the company opened seven Coach retail stores and two factory stores, while closing one factory location, bringing the total to 193 retail stores and 82 factory stores at July 2, 2005. This was a net increase of 19 Coach retail stores from the 174 in operation a year ago. Also during the quarter, the Ala Moana retail store in Hawaii was expanded, bringing the total number of completed retail store expansions this year to seven. Coach Japan opened two new locations, and closed two, bringing the total to 106 at fiscal year end. This was a net increase of four locations from the 102 at year-end 2004. In addition, we expanded two locations during the fourth quarter, bringing the year end total to 14 expansions in Japan.
"While fiscal 2006 has just begun, our momentum continued through July. They're confident that proven growth strategies built upon their strong business and brand equities, will continue to deliver excellent returns in the seasons ahead and over their planning horizon,” Frankfort concluded.
The company introduced its first fiscal quarter outlook with sales targeted to be at $440-$445 million, an increase of at least 28 percent, and earnings per share projected to be at least $0.24, a gain of at least 40 percent. This compares to the consensus earnings estimate of $0.23 for first quarter.
marketing@alchempro.com
