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Wednesday, 25 January 2012 |
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 The luxury leather accessories maker bagged a good Q2 as it reported on Tuesday. Coach’ s second-quarter earnings per share and revenue surpassed Wall Street estimates by rising 18% to $1.18. Strong sales in America and China and a surge
of interest among its coveted male shoppers helped Coach’s sales to grow 15% to $1.45 billion. However, gross margin narrowed slightly to 72.2% from 72.4% in the prior year, whereas the operating margin was 36% compared to 35.9% from one year ago.
Same-store  sales in North America increased 8.8%, while the brand has seen a good performance abroad, especially in Asia. During the second quarter, the company opened nine new stores in China, including a flagship store in Hong Kong. The company has its sights laid on China to generate at least US$300 million in sales in fiscal 2012.
Despite having entered the men's market quite recently, manufacturing high-end belts, wallets and computer bags, after a strong Q2, Coach expects the men's business to double to over 400 million dollars in 2012, they stated in a communication issued on Tuesday.
Shares of Coach (COH) jumped 7.5% to 69 dollars soon after the luxury handbag designer's reported second-quarter earnings per share and revenue that have beaten Wall Street forecast. Nevertheless, investment analysts at Collins Stewart in a note issued to investors on Tuesday their “neutral” rating reiterated on the stock. Also analysts at Needham & Company commented on the stock, in their case raised their price target on shares of Coach to US$82.00 in a research note to investors on Tuesday.
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