The company also announced that during the first fiscal quarter, it repurchased and retired nearly 3.1 million shares of its common stock at an average cost of $56.59, spending a total of $175 million. At the end of the period, about $85 million remained under the company’s prior repurchase authorization.
As noted in Coach’s Form 8-K filing earlier this month, the company has changed its reportable segments to a geographic focus, recognizing the expansion and growth of sales through its international markets. Based on these segments, first fiscal quarter sales results in each of Coach’s primary channels of distribution were as follows:
- Total North American sales increased 8%, to $784 million from $729 million last year. North American direct sales rose 11% for the quarter with comparable store sales up 5.5%. At POS, sales in North American department stores were essentially even with prior year while shipments into department stores declined, as inventories were planned lower.
- International sales increased 15% to $362 million from $314 million last year. China results continued very strong, with total sales up nearly 40% and comparable store sales rising at a double-digit rate. Shipments into international wholesale accounts rose sharply reflecting strong underlying POS sales trends. In Japan, sales rose 1% on a constant-currency basis, while dollar sales were even with the prior year, adjusted for a slightly weaker yen.
During the first quarter of fiscal 2013 in North America, the company opened five factory stores, including three Men’s factory stores. This brought the total to 354 retail stores and 174 factory stores as of September 29, 2012. In China, eight net locations were opened, bringing the total to 104. In Japan, Coach opened one Men’s factory store. Therefore, at the end of the quarter there were 188 total locations in Japan. As previously announced, during the first quarter the company acquired the domestic retail Coach businesses in Malaysia and Korea. At quarter-end, including these acquisitions, as well as those made in FY12, the company operated seven locations in Singapore, 27 in Taiwan, 10 in Malaysia and 48 in Korea.