US-based Coach, Inc., a marketer of modern classic accessories, has reported net sales of $416 million for its third fiscal quarter ended April 2, 2005, 33% higher than the $313 million reported in the same period of the prior year.

In addition, the company announced the purchase of Sumitomo's 50% interest in Coach Japan, Inc. for approximately $225 million plus undistributed profits and paid-in capital of about $75 million. The purchase is expected to close at the end of the current fiscal year and be accretive to earnings in FY06.

The company now estimates 2005 sales of over $1.7 billion for the full fiscal year ending July 2, 2005, an increase of about 29% from prior year.

Lew Frankfort, chairman and CEO of Coach, Inc., said: "We're well positioned to sustain accelerated growth through the rest of this quarter, as our business this month has continued strong throughout all channels. In the fourth quarter, we will be adding seven more retail stores in the US, bringing the total to 19 new retail stores in fiscal 2005. Looking ahead, we've never felt more positive about our prospects for growth, which rest on our distinctive proposition, strong brand equities, and expanding market share."

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