Coach Net Climbs, Reiterates Outlook

Second-quarter earnings rise more than 21 percent as sales manage a double-digit gain on ‘diversified business model.’

Coach Inc. on Wednesday reported a 10.9 percent jump in second-quarter earnings, buoyed by international sales.
For the three months ended Dec. 29, earnings grew to $252.3 million, or 69 cents a diluted share, from $227.5 million, or 61 cents in the year prior.
Sales rose 21.4 percent to $978 million from $805.6 million last year.

“We were very pleased to deliver holiday results which met our top- and bottom-line expectations. Our strong overall performance reflects the critical balance provided by our diversified business model, which limits our dependence on any one channel,” Lew Frankfort, chairman and chief executive officer, said in a statement. “This enabled us to achieve our sales and earnings goals despite a tough retail environment in the U.S.

However, shares were trading down more than 4 percent in early-morning trading.

The company reiterated its full-year guidance of $2.06 a diluted share, despite a “challenging climate.”

For further coverage, see Thursday’s issue of WWD.

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