NEW YORK, Feb 24, 2003 (BUSINESS WIRE) -- Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, announced that its third quarter results to date are trending well above plan.

The Company now expects that fiscal third quarter earnings for the period ending March 29, 2003, will be at least $0.29 per diluted share, compared with the prior year's $0.16, with sales of at least $210 million. The analysts' current consensus estimate is $0.25 per share.

Preparing to address investors at the Bear Stearns Retail, Restaurants & Apparel Conference in New York, Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc. said, "The vitality of our business this quarter reflects the vibrancy of the Coach brand with sales trends strong in all channels and further expansion of our operating margins. In addition, U.S. comparable store sales are now expected to be at least 10% ahead of last year's levels, driven by the strength in full price stores, sustaining the momentum that our business realized last calendar year. Consumers have responded enthusiastically to our transitional and early spring offerings, including the new styles and colors in our Hamptons Leather and Ergo handbags and most recently to our mini Signature logo collection."

"Our distinctive business model is based upon the underlying premise that Coach offers accessible luxury American lifestyle accessories to a loyal and growing consumer franchise. We provide consumers with relevant, aspirational products that are extremely well made at an exceptional price. By doing so, we're able to continually strengthen Coach's leadership position by building lasting market share," Mr. Frankfort added.

"Looking ahead, I'm confident that we will achieve sustained, accelerated growth though our planning horizon as we continue to significantly increase our share of the premium accessories market. We now expect fiscal year 2003 sales and diluted earnings per share of at least $915 million and $1.46, respectively. For the fourth quarter, we are targeting at least: $205 million in sales, high-single-digit US comparable store sales increases and earnings per share of $0.25, " Mr. Frankfort concluded.

Coach will present at the Bear Stearns Retail, Restaurants & Apparel Conference on February 27, 2003 at 10:45 a.m. (EST). The audio portion of the presentation will be webcast live and archived for a period of five business days and is available to the general public. To access the live audio portion of the presentation, log onto: http://access.bearstearns.com/conferences/retail2003/ or www.coach.com/investors.

Results for the third fiscal quarter, which will end on March 29, 2003, are expected to be reported before the opening of the market on April 22, 2003 and to be discussed in a management-sponsored conference call at 8:30 a.m. (ET) and simultaneous webcast that day on the Internet at www.coach.com .

Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, jewelry, sunwear, furniture and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, through the Coach catalogue in the U.S. by calling 1-800-223-8647 and through Coach's website at www.coach.com. Coach's shares are traded on The New York Stock Exchange under the symbol COH.

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," "estimate," "are positioned to," "continue," "project," "guidance," "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.

CONTACT:
Coach, New York
Analysts & Media
Andrea Shaw Resnick
212-629-2618

Burson-Marsteller, New York
Media:
Jennifer Stalzer
cell 646-824-9508
212-614-4619