The locally based retailer said net earnings for the fiscal first quarter rose to $93.6 million, or 24 cents per share, some $31 million more than last year when earnings were $61 million, or 16 cents per share. Earnings before option expenses for the period were 26 cents per share, one cent more than the average analyst estimate.
Sales for the first quarter showed a strong 30% increase, climbing to $449 million from $334 million in the same quarter a year earlier. The rise in sales was helped by Coach Japan, which saw a 29% increase, and comparable store sales in the United States, which rose $25.1%, the company said. Analysts on average had expected sales of $447.4 million.
First-quarter results were helped by the company's new product line which was "very well received" by consumers, chief executive Lew Frankfort said.
"Luxury is going to have an excellent season," said Frankfort, noting that holiday sales for the company, especially in the leather-goods catagory, are expected to be strong.
The company, which operates more than 300 stores in the United States and has nearly 200 locations in 19 other countries, also said sales should continue to be strong through the second quarter as the economy gains momentum. Before option expenses, which came in at 2 cents per share, income for the second quarter was expected to be at least 45 cents per share, above analysts estimates of 44 cents. Sales of at least $645 million were projected for the second quarter, a 21% increase from last year's second quarter.
For the full year, Coach said it expects earnings of at least $1.28 a share before the option expense, slightly above analysts estimates of $1.26 per share.
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