Coach, Inc. (NYSE: COH), a leading marketer of modern classic
American accessories, today announced an increase of 19% in
earnings per diluted share to $0.46 for its third fiscal quarter
ended March 29, 2008, up from $0.39 per diluted share a year ago.
This substantial increase in earnings from the prior year�s third
quarter reflected a 19% gain in net sales. In the third quarter,
net sales were $745 million compared with the $625 million reported
in the same period of the prior year. Net income rose 10% to $162
million, or $0.46 per diluted share, compared with $147 million, or
$0.39 per diluted share in the prior year. For the quarter,
operating income totaled $257 million, up 13% from the $227 million
reported in the comparable year ago period, while operating margin
was 34.5% versus 36.2% reported for the prior year. During the
quarter, gross profit rose 15% to $558 million from $486 million a
year ago. Gross margin was 75.0% versus 77.8% a year ago, impacted
primarily by the sharp rise of the yen over the period, and, as
expected, by both the continued promotional environment and channel
mix. SG&A expenses as a percentage of net sales improved by 100
basis points to 40.5%, compared to the 41.5% reported in the
year-ago quarter, as the company was able to leverage expenses �
notably selling and distribution costs - on the higher sales base.
On a constant-exchange-rate basis, excluding the positive currency
effect from translating foreign-denominated sales in U.S. dollars,
net sales increased 16% in the third quarter. On the same basis,
operating income rose 17%. Lew Frankfort, Chairman and Chief
Executive Officer of Coach, Inc., said, �We were pleased to deliver
quarterly results which met our top and bottom-line expectations
despite the weakening retail climate in the U.S. Our strong overall
performance continues to reflect the critical balance provided by
our multi-channel and international business model.� For the nine
months ended March 29, 2008, net sales were $2.4 billion, up 22%
from the $2.0 billion reported in the first nine months of fiscal
2007. Net income rose to $570 million, up 19% from the $477 million
reported a year ago, while earnings per share rose 23% to $1.56
from $1.27. Third fiscal quarter sales results in each of Coach�s
primary channels of distribution grew as follows:
Direct-to-consumer sales increased 20% to $578 million from $481
million last year, including a 20% gain in sales from new and
existing Coach stores in North America. North American comparable
store sales for the quarter rose 9.0%. This compares to last year�s
third quarter in which North American comparable store sales rose
20.0% overall. In Japan, sales rose 12% on a constant-currency
basis, while dollar sales rose 25% adjusted for a stronger yen.
Indirect sales increased 15% to $166 million in the third quarter
from the $144 million reported for the prior year. Coach enjoyed
gains at retail for all indirect businesses, including
international locations as well as in U.S. department stores.
During the third quarter of fiscal 2008, the company opened five
retail stores and two factory stores in North America, bringing the
total to 287 retail stores and 101 factory stores as of March 29,
2008. In addition, one factory store was expanded. In Japan, Coach
opened two shop-in-shops while two retail locations closed, leaving
the total at 147 at the end of the quarter, while also expanding a
total of five locations. Mr. Frankfort continued, �Beginning this
quarter, we�re only providing aggregated comparable store sales for
our North American retail and factory stores. While less detailed,
this measure better aligns operational performance reporting with
operational flexibility to respond to changes in market dynamics.
This metric fully reflects the brand�s overall retail performance
in North America while enabling our shareholders to gauge our
results against prior periods and other luxury retailers.� �As
noted, we�re pleased with our sales growth for the quarter and the
vitality of our North American businesses, where total revenues
grew 15%, including a 20% increase in sales at our stores driven by
both distribution growth and productivity gains. In addition, we
continue to be very pleased with our new retail store volumes as
they continue to surpass our initial projections both in existing
markets, such as the Las Vegas area, and in new markets, such as
Augusta, Georgia. Outside of North America, we are also excited
about our increased global brand recognition as we continue to
experience rapid growth internationally, most notably in East Asia
and Greater China.� Mr. Frankfort added, �The consumer continued to
embrace our new and innovative product this spring. As part of our
seasonal transition, we introduced our evolved Hamptons collection
in January, featuring the Madeline tote. Offered in multiple sizes,
this new silhouette performed quite well, particularly in bold
colors. In February, we launched our new Heritage Stripe
collection, a group of coated canvas totes and bags, and added an
updated group of Signature Stripe handbags and accessories later
that month. In March, we introduced the Francine satchel at $798,
which was the focus of our spring advertising campaign and was very
well received across all stores. And this month we brought back the
popular Soho collection, in softer, more feminine styles. Looking
ahead, we�re excited about pleated Ergo � arriving this week for
Mother�s Day." �As we briefly discussed last quarter, we have
embarked on a comprehensive review of all ways in which the brand
touches the consumer. These initiatives will be increasingly
evident as we move through the next year, most notably in our
product and in our store environments. In fact, we�re striving to
compress several years of product evolution into FY09 in order to
create a particularly compelling offering.� �These plans include
leveraging the early successes we have seen with our pinnacle
offering, creating a broader assortment of more sophisticated and
elevated product, to create a halo for the entire brand,
heightening Coach's aspirational appeal. At the same time, we will
maintain the balance that is key to our franchise, capitalizing on
our leadership position with our loyal core consumer and with the
aspirational consumer, who is often trading up to Coach.� �Due to
the continued uncertainty in the economic backdrop, we believe that
it�s prudent to wait until our fourth quarter report to offer
guidance for the upcoming fiscal year. That said, we believe that
the initiatives I�ve described, in combination with our diversified
model, will lessen the impact of a slowing consumer environment in
the U.S. through the remainder of this calendar year. It is also
important to note that given the compelling returns we�re
generating, we will continue to execute our existing distribution
growth plans in North America, including the opening of 40 new
retail stores, during the coming year,� concluded Mr. Frankfort.
For the fiscal year 2008 the company projected sales of about $3.18
billion, an increase of about 22% from the prior year, and
reiterated its earnings per diluted share guidance of $2.06, also
representing an increase of about 22%. Imbedded in this guidance is
a fourth quarter sales estimate of about $780 million, representing
a year over year increase of about 20%, and earnings per share of
$0.50, also up about 20%. The company also announced that during
the third fiscal quarter, it repurchased and retired 11,349,802
shares of its common stock at an average cost of $28.85, spending a
total of $327 million. At the end of the period, $333 million was
available under the company�s current repurchase authorization,
which was put into place in early November. Coach will host a
conference call to review third fiscal quarter results at 8:30 a.m.
(EDT) today, April 22, 2008. Interested parties may listen to the
webcast by accessing www.coach.com/investors on the Internet or
dialing into 1-888-405-2080 and asking for the Coach earnings call
led by Andrea Shaw Resnick, SVP of Investor Relations &
Corporate Communications. A telephone replay will be available
starting at 12:00 noon today, for a period of five business days.
The number to call is 1-866-352-7723. A webcast replay of this call
will be available for five business days on the Coach website.
Coach, 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,
scarves, sunwear, fragrance, jewelry and related accessories. Coach
is sold worldwide through Coach stores, select department stores
and specialty stores, through the Coach catalog in the U.S. by
calling 1-800-223-8647 and through Coach�s website at
www.coach.com. Coach�s shares are traded on the New York Stock
Exchange under the symbol COH. This press release contains
forward-looking statements based on management's current
expectations. These statements can be identified by the use of
forward-looking terminology such as "may," "will," "should,"
"expect," "intend," "estimate," "are positioned to," "continue,"
"project," "guidance," �target,� "forecast," "anticipated," or
comparable terms. Future results may differ materially from
management's current expectations, based upon risks and
uncertainties such as expected economic trends, the ability to
anticipate consumer preferences, the ability to control costs, etc.
Please refer to Coach�s latest Annual Report on Form 10-K for a
complete list of risk factors. COACH, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME For the Quarters and Nine Months Ended March
29, 2008 and March 31, 2007 (in thousands, except per share data)
(unaudited) � � � � QUARTER ENDED NINE MONTHS ENDED March 29, March
31, March 29, March 31, 2008 2007 2008 2007 � Net sales $ 744,522 $
625,303 $ 2,399,257 $ 1,960,327 � Cost of sales � 186,204 � �
138,893 � 585,446 � 446,617 � Gross profit 558,318 486,410
1,813,811 1,513,710 � Selling, general and administrative expenses
� 301,626 � � 259,783 � 915,298 � 765,714 � Operating income
256,692 226,627 898,513 747,996 � Interest income, net � 9,547 � �
12,988 � 35,111 � 27,465 � Income before provision for income taxes
and discontinued operations 266,239 239,615 933,624 775,461 �
Provision for income taxes � 103,827 � � 92,225 � 364,109 � 298,335
� Income from continuing operations 162,412 147,390 569,515 477,126
� Income (loss) from discontinued operations, net of income taxes
(4 ) 2,574 16 25,927 � � � � Net income $ 162,408 � $ 149,964 $
569,531 $ 503,053 � � Net income per share � Basic � Continuing
operations $ 0.47 $ 0.40 $ 1.58 $ 1.29 � Discontinued operations �
(0.00 ) � 0.01 � 0.00 � 0.07 � Net income $ 0.47 � $ 0.41 $ 1.58 $
1.36 � � Diluted � Continuing operations $ 0.46 $ 0.39 $ 1.56 $
1.27 � Discontinued operations � (0.00 ) � 0.01 � 0.00 � 0.07 � Net
income $ 0.46 � $ 0.40 $ 1.56 $ 1.34 � Shares used in computing net
income per share � Basic � 348,125 � � 370,264 � 360,507 � 369,039
� Diluted � 351,593 � � 379,289 � 365,497 � 376,334 COACH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS At March 29, 2008, June 30,
2007 and March 31, 2007 (in thousands) � � March 29, June 30, March
31, 2008 2007 2007 ASSETS (unaudited) (unaudited) � Cash, cash
equivalents and short term investments $ 616,202 $ 1,185,816 $
936,174 Receivables 148,074 107,814 124,858 Inventories 319,655
291,192 249,818 Other current assets � 187,022 � 155,374 � 155,414
� Total current assets 1,270,953 1,740,196 1,466,264 � Property and
equipment, net 420,943 368,461 344,659 Other noncurrent assets �
464,344 � 340,855 � 332,272 � Total assets $ 2,156,240 $ 2,449,512
$ 2,143,195 � LIABILITIES AND STOCKHOLDERS' EQUITY � Accounts
payable $ 63,676 $ 109,309 $ 62,113 Accrued liabilities 289,554
298,452 275,916 Subsidiary credit facilities 11,079 - - Current
portion of long-term debt � 285 � 235 � 235 � Total current
liabilities 364,594 407,996 338,264 � Long-term debt 2,580 2,865
2,865 Other liabilities 330,613 128,297 96,620 � Stockholders'
equity � 1,458,453 � 1,910,354 � 1,705,446 � Total liabilities and
stockholders' equity $ 2,156,240 $ 2,449,512 $ 2,143,195
Tapestry (NYSE:TPR)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Tapestry (NYSE:TPR)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024