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
TheStreet Open House

Coach Reports Second Quarter Earnings Per Share Of $1.23

Coach will host a conference call to review second fiscal quarter results at 8:30 a.m. (ET) today, January 23, 2013. Interested parties may listen to the webcast by accessing www.coach.com/investors on the Internet or dialing into 1-888-405-2080 or 1-210-795-9977 and asking for the Coach earnings call led by Andrea Shaw Resnick, SVP of Investor Relations & Corporate Communications. A telephone replay will be available starting at 12:00 noon today, for a period of five business days. The number to call is 1-866-352-7723 or 1-203-369-0080. A webcast replay of this call will be available for five business days on the Coach website.

Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, men’s bags, women’s and men’s small leathergoods, weekend and travel accessories, footwear, watches, outerwear, scarves, sunwear, fragrance, jewelry and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, and through Coach’s website at www.coach.com. Coach’s common stock is traded on the New York Stock Exchange under the symbol COH and Coach’s Hong Kong Depositary Receipts are traded on The Stock Exchange of Hong Kong Limited under the symbol 6388.

Neither the Hong Kong Depositary Receipts nor the Hong Kong Depositary Shares evidenced thereby have been or will be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States or to, or for the account of, a U.S. Person (within the meaning of Regulation S under the Securities Act), absent registration or an applicable exemption from the registration requirements. Hedging transactions involving these securities may not be conducted unless in compliance with the Securities Act.

This press release contains forward-looking statements based on management's current expectations. These statements can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "intend," “ahead,” "estimate," "on track," “on course,” "are positioned to," "continue," "project," "guidance," “target,” "forecast," "anticipated," or comparable terms. Future results may differ materially from management's current expectations, based upon risks and uncertainties such as expected economic trends, the ability to anticipate consumer preferences, the ability to control costs, etc. Please refer to Coach’s latest Annual Report on Form 10-K for a complete list of risk factors.

                       

COACH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

For the Quarters and Six Months Ended December 29, 2012 and December 31, 2011

(in thousands, except per share data)

(unaudited)

 
QUARTER ENDED SIX MONTHS ENDED
December 29, December 31, December 29, December 31,
2012 2011 2012 2011
 
Net sales $ 1,503,774 $ 1,448,649 $ 2,665,124 $ 2,499,008
 
Cost of sales   418,392     403,438     734,574     689,144  
 
Gross profit 1,085,382 1,045,211 1,930,550 1,809,864
 
Selling, general and
administrative expenses   558,805     544,310     1,072,256     986,997  
 
Operating income 526,577 500,901 858,294 822,867
 
Interest income (expense), net 266 (16 ) 302 98
 
Other expense   (1,505 )   (1,755 )   (3,577 )   (3,231 )
 
Income before provision for income taxes 525,338 499,130 855,019 819,734
 
Provision for income taxes   172,574     151,635     280,874     257,256  
 
Net income $ 352,764   $ 347,495   $ 574,145   $ 562,478  
 
Net income per share
 
Basic $ 1.25   $ 1.20   $ 2.02   $ 1.94  
 
Diluted $ 1.23   $ 1.18   $ 2.00   $ 1.90  
 
Shares used in computing

net income per share

 
Basic   282,693     289,812     283,630     289,578  
 
Diluted   286,223     295,509     287,358     295,572  
 
                 

COACH, INC.

GAAP TO NON-GAAP RECONCILIATION

For the Quarters Ended December 29, 2012 and December 31, 2011

(in thousands, except per share data)

(unaudited)

 
QUARTER ENDED

December 29, 2012

December 31, 2011

GAAP Basis GAAP Basis Tax Charitable Non-GAAP Basis
(As Reported) (As Reported) Adjustment Contribution (Excluding Items)
 
Selling, general and
administrative expenses $ 558,805 $ 544,310 $ - $ 20,270 $ 524,040
 
Operating income $ 526,577 $ 500,901 $ - $ (20,270 ) $ 521,171
 
Income before provision for income taxes $ 525,338 $ 499,130 $ - $ (20,270 ) $ 519,400
 
Provision for income taxes $ 172,574 $ 151,635 $ (12,365 ) $ (7,905 ) $ 171,905
 
Net income $ 352,764 $ 347,495 $ 12,365 $ (12,365 ) $ 347,495
 
Diluted Net income per share $ 1.23 $ 1.18 $ 0.04 $ (0.04 ) $ 1.18
 
                 

COACH, INC.

GAAP TO NON-GAAP RECONCILIATION

For the Six Months Ended December 29, 2012 and December 31, 2011

(in thousands, except per share data)

(unaudited)

 
SIX MONTHS ENDED

December 29, 2012

December 31, 2011

GAAP Basis GAAP Basis Tax Charitable Non-GAAP Basis
(As Reported) (As Reported) Adjustment Contribution (Excluding Items)
 
Selling, general and
administrative expenses $ 1,072,256 $ 986,997 $ - $ 20,270 $ 966,727
 
Operating income $ 858,294 $ 822,867 $ - $ (20,270 ) $ 843,137
 
Income before provision for income taxes $ 855,019 $ 819,734 $ - $ (20,270 ) $ 840,004
 
Provision for income taxes $ 280,874 $ 257,256 $ (12,365 ) $ (7,905 ) $ 277,526
 
Net income $ 574,145 $ 562,478 $ 12,365 $ (12,365 ) $ 562,478
 
Diluted Net income per share $ 2.00 $ 1.90 $ 0.04 $ (0.04 ) $ 1.90
 
                 

COACH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

At December 29, 2012, June 30, 2012 and December 31, 2011

(in thousands)

(unaudited)

 
December 29, June 30, December 31,
2012 2012 2011
ASSETS
 
Cash, cash equivalents and short term investments $ 858,657 $     917,215 $ 1,085,595
Receivables 223,041 174,462 212,041
Inventories 493,659 504,490 429,031
Other current assets   273,010       208,361   169,339
 
Total current assets 1,848,367 1,804,528 1,896,006
 
Property and equipment, net 701,273 644,449 595,829
Other noncurrent assets   729,789       655,344   609,050
 
Total assets $ 3,279,429 $     3,104,321 $ 3,100,885
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Accounts payable $ 152,571 $ 155,387 $ 136,731
Accrued liabilities 594,140 540,398 673,461
Current portion of long-term debt   22,225       22,375   804
 
Total current liabilities 768,936 718,160 810,996
 
Long-term debt 485 985 23,165
Other liabilities 427,676 392,245 397,998
 
Stockholders' equity   2,082,332       1,992,931   1,868,726
 
Total liabilities and stockholders' equity $ 3,279,429 $     3,104,321 $ 3,100,885
 




3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs