June 2007 -- Coach Inc., famous for its high-end leather handbags and accessories, saw profit rise nearly 40% over 2005. Net income was $118 million, or 31 cents per share compared with $90 million, or 23 cents per share in 2005. Net sales totaled $2.1 billion, a 23% increase over the previous year.
The company also reported a strong fourth quarter, with a 33% earnings increase. The company partly attributes its year-end performance to sales from the introduction of its Soho Optic Signature line of handbags, accessories and footwear in April 2006. Coach also benefited from increased sales in Japan, according to CEO Lew Frankfort.
"Our rapidly expanding sales in Japan reflect the success of our distribution strategy -- notably the acceleration of new openings, along with the expansion of highly productive shops-in-shops," said Frankfort when the year-end results were released in August 2006.
The company opened seven new stores and expanded nine stores in Japan during fiscal 2006.
