Coach 4Q net income rises on sales rebound

[August 03, 2010]  NEW YORK (AP) --  A sharp in increase in sales in North America and Asia helped Coach's fourth-quarter net income rise 34 percent, the luxury handbag maker said Tuesday.

The increase is a sign that Coach's lowered handbag prices and focus on growth in China is paying off and that the U.S. luxury market's rebound is continuing.

In the quarter ended July 3, net income rose to $195.5 million, or 64 cents per share. That compares with $145.8 million, or 45 cents per share, last year. Analysts expected 56 cents per share.

Revenue rose 22 percent to $950.5 million. Analysts expected $888.9 million.

Coach Inc., based in New York, said an extra week in the quarter boosted revenue by $70 million.

CEO Lew Frankfort said market share grew in all regions. Revenue in stores open at least a year rose 6.3 percent in North America.

For the full year, net income rose 18 percent to $734.9 million, or $2.33 per share, from $623.4 million, or $1.91 per share.

Revenue rose 12 percent to $3.61 billion.

Frankfort said the year included several firsts: the first year of direct operation of stores in China, the opening of Coach's first standalone men's stores and expansion in Western Europe.

During the quarter coach bought back about 10.9 million shares for $450 million. About $560 million remain under the company's repurchase program.

As of July 3, Coach had about $696.4 million in cash, cash equivalents and short-term investments.

[Associated Press]

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