Net income rose to $174.2 million, or 45 cents per share, for the quarter ending Dec. 31, a sharp increase over the same period last year when it had profits of $126.9 million or 32 cents per share. Revenue was also up to $650.3 million, a 22% increase. The quarterly results beat both Wall Street and Coach's own estimates for the period. Analysts projected a profit of 44 cents per share on sales of $650.9 million for the period while Coach's October forecast put profits at 43 cents per share on sales of at least $645 million.
An expanded collection of leather iPod covers and patchwork designed handbags helped increase comparable sales at Coach's US stores by 19.9% while overall sales in Japan, the company's biggest foreign market, jumped 20% during the quarter. Indirect sales to consumers, including department store purchases, also rose 21%, the company said.
"Our results are exceptionally impressive when you consider Coach has achieved exceptional double-digit sales growth in each of the last four holiday quarters," Lew Frankfort, the firm's chairman and chief executive officer, said while announcing the results during a conference call Tuesday.
"The consistency of our growth across geographies, channels and different consumer segments over multiple years illustrates the enormous opportunity still available to us."The company, which opened four Coach stores in the United States during the second quarter, operates 203 retail outlets and 84 factory stores in the US and 100 stores in Japan.
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