Coach Profits Leap 41.4% as Brand Plans 100 More U.S. Stores

NEW YORK — The brand may be "Coach," but to judge from its earnings and forecast, it definitely flew first class in the second quarter.Coach...

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Also built into the guidance, Devine said, is a second-half EPS of at least 48 cents, with the third and fourth quarters about equal, versus the 34 cents reported for the same period in 2002 and analysts’ expectations of 42 cents. Sales are expected to grow 20 percent while comps should increase in the high-single-digit range.

Impressed with the results, Ann-Marie Peterson, an analyst with Thomas Weisel Partners, said Coach is in the "sweet spot" of many trends, including the shift to value and the growing importance of accessories.

"Coach is doing a tremendous job at educating women to the importance of accessories and giving them a product each season to do that and saying that handbags are not a replacement-driven product, but fashion-driven."

For the first half, profits rose 49.7 percent to $84.9 million, or 92 cents, versus year-ago profits of $56.7 million, or 63 cents. Sales amassed to $501.3 million, an increase of 29.7 percent over the $386.5 million reached in the first half of 2002.
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