This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Coach Reports Second Quarter Earnings Of $1.18, Up 18% On A 15% Sales Increase

Coach, Inc. (NYSE: COH, SEHK: 6388), a leading marketer of modern classic American accessories, today announced sales of $1.45 billion for its second fiscal quarter ended December 31, 2011, compared with $1.26 billion reported in the same period of the prior year, an increase of 15%. Net income for the quarter totaled $347 million, with earnings per diluted share of $1.18. This compared to net income of $303 million and earnings per diluted share of $1.00 in the prior year’s second quarter, increases of 15% and 18%, respectively.

Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, “We’re very pleased with the strong sales and earnings growth we achieved once again this holiday quarter. Our performance reflected the strength of our franchise, our broad and diversified product platform and our multichannel, international distribution model.”

For the second fiscal quarter, operating income on a non-GAAP basis totaled $521 million, up 15% from the $453 million reported in the comparable year ago period, while the operating margin was 36.0% versus 35.9% reported in the prior year. During the quarter, gross profit increased 14% to $1.05 billion from $915 million a year ago. Gross margin remained strong on a year-over-year basis at 72.2% compared to 72.4% in the prior year. SG&A expenses as a percentage of net sales on a non-GAAP basis improved to 36.2%, compared to the 36.5% reported in the year-ago quarter. On a GAAP basis, operating income for the quarter was $501 million with a 34.6% margin and the SG&A expense ratio was 37.6%.

During the second quarter, the company recorded certain items. They included the one-time effect of a revaluation of deferred tax balances due to a change in Japan’s corporate tax laws and the favorable completion of a multi-year pricing agreement with Japan. Taken together, they yielded a substantially lower tax rate of 30.4% for the quarter, which decreased Coach’s provision for taxes by $12 million. As a result, the company made a contribution of $20 million to the Coach Foundation, impacting SG&A expenses by that amount, and precisely offsetting the effect of the one-time tax benefits to net income and earnings per share.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.72 -0.56%
FB $119.49 1.43%
GOOG $711.12 1.38%
TSLA $214.93 1.61%
YHOO $37.23 0.79%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs