The company also announced that during the second fiscal quarter, it repurchased and retired nearly 4.8 million shares of its common stock at an average cost of $62.48, spending a total of $300 million. At the end of the period, approximately $600 million remained under the company’s current repurchase authorization.
For the six months ended December 31, 2011, net sales were $2.50 billion, up 15% from the $2.18 billion reported in the first six months of fiscal 2011. Net income totaled $562 million, up 14% from the $492 million reported a year ago, while earnings per share rose 17% to $1.90 from $1.62.
Second fiscal quarter sales results in each of Coach’s primary channels of distribution were as follows:
- Direct-to-consumer sales, which now include our Singapore business, increased 17% to $1.28 billion from $1.10 billion last year. North American comparable store sales for the quarter rose 8.8%. In Japan, sales were even on a constant-currency basis, while dollar sales rose 6% driven by a stronger yen. China sales remained robust, as POS sales continued to comp at a double-digit rate.
- Indirect sales were even with prior year on a comparable basis, at $166 million in the second quarter, impacted by the timing of international shipments. International sales at POS were strong for the quarter while sales in U.S. department stores were even with last year’s holiday.
During the second quarter of fiscal 2012, in North America, the company opened five retail stores and five factory stores including two Men’s retail stores and one Men’s factory store. This brought the total to 350 retail stores and 157 factory stores as of December 31, 2011. In Japan, Coach opened six locations taking the total to 184 at the end of the quarter. In China, nine new locations were opened during the quarter including a flagship in Hong Kong on Nathan Road and eight locations on the Mainland, bringing the total to 80.