SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): January 12, 2005
Coach, Inc.
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(Exact name of registrant as specified in its charter)
Maryland 1-16153 52-2242751
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(State of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
516 West 34th Street, New York, NY 10001
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(Address of principal executive offices) (Zip Code)
(212) 594-1850
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(Registrant's telephone number, including area code)
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02: Results of Operations and Financial Condition.
On January 12, 2005, Coach, Inc. (the "Company") issued a press release
(the "Press Release") in which the Company announced its revised estimated
financial results for its fiscal quarter ended January 1, 2005. All information
in the press release is being furnished to the Securities and Exchange
Commission and shall not be deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to
liability under that section, nor shall it be deemed incorporated by reference
in any filing under the Securities Act of 1933, as amended, or the Exchange Act,
except as expressly set forth by specific reference in such a filing.
Item 9.01: Financial Statements and Exhibits.
(c) Exhibits. The following exhibit is being furnished herewith:
99.1 Text of Press Release, dated January 12, 2005
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: January 12, 2005
COACH, INC.
By: /s/ Carole P. Sadler
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Carole P. Sadler
Senior Vice President, General Counsel
and Secretary
EXHIBIT INDEX
99.1 Text of Press Release, dated January 12, 2005
Exhibit 99.1
Coach Raises Second Quarter Earnings Expectations
to at Least $0.67, up from $0.64 Estimate; Results Driven by 29% Sales
Gain and Continued Margin Improvement
NEW YORK--(BUSINESS WIRE)--Jan. 12, 2005--Coach, Inc., (NYSE:
COH), a leading marketer of modern classic American accessories,
announced that it is raising its earnings expectations for the second
fiscal quarter ended January 1, 2005 to at least $0.67 per share. This
level is above the company's guidance of at least $0.64 announced
during the October 26, 2004 conference call, as well as analysts'
current consensus estimate of $0.66.
Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc.
said, "We're delighted with the continued strength of our results and
the success of our key holiday initiatives as total U.S. sales rose
27%. Our performance speaks to the vitality of the Coach brand, as we
continue to grow market share in a rapidly expanding U.S. premium
accessories category."
"Our excellent worldwide second quarter results also reflect the
continuing strength of the Coach brand reinforced by our innovative
and relevant product offering across all distribution channels and key
geographies. In addition, our improvement in profitability was a
result of both gross margin expansion and the further leveraging of
our expense base. We now expect to report earnings per diluted share
of at least $0.67 for our second fiscal quarter as compared to $0.50
reported last year, an increase of at least 34%."
-- Sales for the second fiscal quarter ended January 1, 2005
increased 29% to $532 million from $412 million for the
comparable quarter of the prior year. This sales increase
exceeds the company's estimate provided during the October
conference call of at least $505 million.
-- Direct-to-consumer sales increased 30% to $307 million from
$237 million last year. U.S. comparable store sales for the
quarter rose 16.5%, with retail stores up 13.9% and factory
store sales up 20.7%. It's especially worth noting that U.S.
comparable retail stores are 55% more productive than they
were just three years ago, given the successive second quarter
same store sales increases of 18%, 16% and 14%, since FY02.
The exceptional U.S. factory store performance this quarter
reflects channel strength and the success of an improved
merchandise offering. Lastly, Coach again generated very
strong sales gains on the Internet during the second quarter,
as this channel becomes increasingly important as a revenue
generator, in addition to its primary role as a U.S. full
price traffic driver.
-- Indirect sales rose 29% to $225 million from $174 million in
the same period last year. The strength in indirect was broad
based, as significant sales growth in Japan and continued
momentum in U.S. department stores and International wholesale
all contributed to these results. In Japan, Coach achieved
high-single-digit increases in comparable location sales.
Mr. Frankfort added, "We're extremely pleased with the 35% growth
in sales in constant currency in Japan this quarter, especially in
light of lackluster category sales, as we continue to rapidly grow our
market share in this important market for Coach. Our results
underscore the success of our distribution strategy in Japan, notably
the acceleration of flagship openings and the expansions of existing
shops."
"Finally, consumers are responding enthusiastically to our early
spring offering during what is traditionally, for most other
retailers, a highly promotional post-holiday period. This is allowing
us to enjoy continued momentum throughout our business into January,"
concluded Mr. Frankfort.
Results for the second fiscal quarter, which ended on January 1,
2005, are expected to be reported before the opening of the market on
January 25, 2005 and to be discussed in a management-sponsored
conference call and simultaneous webcast at 8:30 a.m. (EST) that day.
Interested parties may listen to the webcast by accessing
www.coach.com/investors on the Internet or dialing into 1-888-405-2080
and asking for the Coach earnings call led by Andrea Shaw Resnick, VP
of Investor Relations. A telephone replay will be available starting
at 12:00 noon that day, for a period of five business days. The number
to call is 1-888-282-0028. A webcast replay of the earnings conference
call will also be available for five business days on the Coach
website.
All results described above are based on preliminary, unaudited
sales.
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, sunwear,
and related accessories. Coach is sold worldwide through Coach stores,
select department stores and specialty stores, through the Coach
catalog 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, Inc.
Andrea Shaw Resnick, 212-629-2618