COACH EARNINGS SOAR
NEW YORK — In its first report since being spun off by Sara Lee and going public on Oct. 5, Coach Inc. reported earnings soared 270.5 percent in its first quarter ended Sept. 30 on a 14 percent sales gain.
Earnings rose to $7.6 million, or 17 cents a share, from $2 million, or 5 cents, a year ago. Excluding a $5 million pretax charge to close a manufacturing facility in Florida, earnings catapulted 428 percent to $10.8 million.
Sales rose to $134.6 million from $118 million. By segment, direct-to-consumer sales, primarily its retail stores, climbed 14.4 percent to $80.5 million. Same-store sales rose 5.5 percent, with gains of 3.8 percent at full-price stores and 6.7 percent at factory stores. Wholesale revenues climbed 13.4 percent to $54 million, driven by increased demand for new products in all channels, with double-digit gains in comparable location sales to Japanese consumers worldwide.
Lew Frankfort, chairman and chief executive, said the results for the quarter “confirm that consumers are enthusiastically embracing Coach’s broader, modern product offering, reinvigorated retail environment and the accelerated product flow of our lifestyle collections.”
Coach, which was spun off from Sara Lee Corp., sold 8.5 million shares at $16 each in its initial public offering.