There was more encouraging news for the world’s leather industry last week as the US luxury leather goods retailer, Coach Inc, posted a 43% leap in gross profits to $187.9 million for its first fiscal quarter.

In the three months ended September 27 2003, the firm’s sales increased 34% to $258.4 million, boosted by swift revenue growth in its luxury handbags and accessories division. The company’s net income rose a massive 88% to $42.3 million

Lew Frankfort, chairman and CEO said: “Our results were driven by both the vitality of the Coach brand and the enthusiastic consumer response to our product offerings – notably handbags and small leather goods – across all business units. We’re confident that the strength of the brand, combined with our clearly articulated roadmap for growth, will allow Coach to continue to deliver superior financial results.”

During the quarter, the company opened seven and closed one Coach retail store, bringing its total to 162 retail and 77 factory stores. In addition, four retails stores were expanded.

Coach plans to open three retail stores in the US in the second quarter and a further 10 new locations in Japan over the next fiscal. The company expects second quarter sales of at least $385 million, representing a year-on-year increase of at least 25% and earnings per diluted share of $0.44. For fiscal 2004, sales are expected to increase 27% to $1.2 billion.

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