The New York leather goods and accessories retailer, Coach Inc, has announced a dramatic leap in its second quarter earnings by 39% to US$0.68 per share. For the three months ending December 28 2002, sales were up by 31% to US$308.5 million.

The company, which operates 150 retail and 76 factory stores in the US and Japan, now predicts fiscal 2003 sales to increase by a massive 25% to at least US$900 million and $1.40 per share, as opposed to analysts’ current estimates of US$1.33.

“Our earnings are evidence of our stable retail pricing policy, improved manufacturing margins and our ability to leverage our expenses despite the promotional retail environment,” said chairman and chief executive Lew Frankfort. “Our key growth strategies will enable us to build upon our position as a leading American luxury brand during 2003.”

The US designer plans to open a further seven retail stores in the US and six outlets in Japan in 2003, which includes a flagship store in the Shibuya area of Tokyo.

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