Coach Q2 sales up 4 percent

Coach has had sales of 1.50 billion dollars (Rs 8,038 crores) for its second fiscal

quarter ended December 29, 2012. This compares with 1.45 billion dollars (Rs 7,770 crores) for the same period of the prior year, an increase of 4 percent. On a constant currency basis sales rose 5 percent for the quarter. Net income for the period totaled 353 million dollars(Rs 1,891 crores), with earnings per diluted share of 1.23 dollars(Rs 65.9). This compares with net income of 347 million dollars(Rs 1,859 crores) and earnings per diluted share of 1.18 dollars (Rs 63.2) in the prior year’s second quarter, increases of 2 percent and 5 percent respectively.

Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men. Lew Frankfort, Chairman and Chief Executive Officer of Coach, said, “During the holiday quarter we drove modest growth and continued to gain overall traction on our key strategies. We posted strong international results, leveraged the men’s opportunity globally and strengthened our digital capabilities. We maintained our pricing strategies despite the retail climate. We are now transforming Coach into a global lifestyle brand, anchored in accessories.”

For the second fiscal quarter, operating income totaled 527 million dollars(Rs 2,824 crores), up 5 percent from the 501 million dollars(Rs 2,684 crores) reported on a GAAP basis in the comparable year ago period. Operating margin was 35 percent versus 34.6 percent reported in the prior year. During the quarter, gross profit increased 4 percent to 1.09 billion dollars (Rs 5,841 crores) from 1.05 billion dollars(Rs 5,626 crores) a year ago. Gross margin remained strong at 72.2 percent, even with the prior year. SG&A expenses as a percentage of net sales were 37.2 percent compared to the 37.6 percent reported in the year-ago quarter.

For the six months ended December 29, 2012, net sales were 2.67 billion dollars (Rs 14, 308 crores), up 7 percent from the 2.50 billion dollars (Rs 13, 397 crores) reported in the first six months of fiscal 2012. Net income totaled 574 million dollars(Rs 3,076 crores), up 2 percent from the 562 million dollars (Rs 3,011 crores) reported a year ago, while earnings per share rose 5 percent to 2 dollars(Rs 107) from 1.90 dollars (Rs 101.8).