Coach Tells of Brisk Sales

The company says first-quarter earnings should beat estimates.
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Coach

(COH)

said its first-quarter earnings should beat analysts' estimates as sales have been strong throughout the summer and in to the start of the fall season.

The upscale seller of handbags now expects fiscal first-quarter sales and earnings for the period ending Oct. 1 of at least $445 million and 25 cents a share, respectively. Analysts are forecasting a profit of 24 cents and sales of $442.7 million, according to Thomson First Call.

Coach also projected fiscal 2006 sales of about $2.1 billion and earnings of at least $1.25 a share, while reaffirming its first-quarter same-store sales guidance. The fiscal-year forecast meets Wall Street's estimates.

Additionally, Coach said Chairman and CEO Lew Frankfort, President and Executive Creative Director Reed Krakoff, and President and Chief Operating Officer Keith Monda signed three-year extensions to their original five-year employment agreements, which will now be in effect through August 2011.

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