This compared to net income of $241 million and earnings per diluted share of $0.75 in the prior year’s second quarter, increases of 26% and 33%, respectively. Concurrently, the company also announced that its Board of Directors has authorised the repurchase of up to $1.5 billion of its outstanding common stock by June 30, 2013.
Lew Frankfort, Chairman and Chief Executive Officer of Coach, said, ‘We’re extremely pleased with the strong holiday sales and earnings growth we achieved, marking a continuation of the trends we have seen throughout the past calendar year. Our performance – led by exceptional North American comparable store sales – reflected the brand’s vibrancy across channels and geographies.’
For the second fiscal quarter, operating income totaled $453 million, up 19% from the $381 million reported in the comparable year ago period, while the operating margin was 35.9% versus 35.8% reported in the prior year. During the quarter, gross profit increased 19% to $915 million from $771 million a year ago. Gross margin remained strong on a year-over-year basis at 72.4%, as channel mix offset sourcing cost benefits. SG&A expenses as a percentage of net sales was 36.5%, compared to the 36.6% reported in the year-ago quarter.
The company also announced that during the second fiscal quarter, it repurchased and retired nearly seven million shares of its common stock at an average cost of $55.72, spending a total of $388 million. At the end of the period, approximately $35 million remained under the company’s previous repurchase authorization.
For the six months ended January 1, 2011, net sales were $2.18 billion, up 19% from the $1.83 billion reported in the first six months of fiscal 2010. Net income totaled $492 million, up 29% from the $382 million reported a year ago, while earnings per share rose 37% to $1.62 from $1.19.
