As expected, US leather accessories retailer Coach has posted an excellent set of fourth quarter and full year results for 2003/04, as its spring and summer season offerings topped off a year of sparkling sales.

In the three months ended July 3, pre-tax profits were up by a healthy 113% on the year before,to $66 million or 34 cents a share, reflecting a 46% increase in net sales (to $338 million) and much improved margins.  Analysts had been predicting a profit of 31 cents a share.  

Full year sales were up 37% on the year before to $1.3 billion, generating profits of $262 million – a 79% increase on the prior eyar.  Diluted earnings per share rose 72% to $1.36, versus 0.79 a year ago.

“We were excited to see an unprecented high level of growth in the US accessory category, as evidenced by sales increases in department and specialty stores,” commented CEO Lew Frankfort.  “This trend bodes well for a sustainable higher level of consumer spending on handbags and womens accessories.”

Mr Frankfort added; “The strength of our fourth quarter results was reflected in all of our businesses.  Clearly our colour and stylish spring and summer offerings, and consistent monthly product flow, drove full-priced sales in our US retail stores, in US department stores and among Japanese consumers worldwide.“

Coach raised its guidance for fiscal 2005 and now estimates sales of $1.6 billion for the year, an increase of at least 20% on 2004.

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