Before I delve into the second-quarter results that Coach
In its second quarter, Coach saw sales increase 29% to $836 million, net income move up 31% to $227 million, and diluted earnings per share jump 36% to $0.94 per share from last year's $0.69 per share. The earnings-per-share performance was aided by share repurchases, but the larger net-income growth also points to a bit of operating leverage coming through as the company's expenses grow slower than its sales.
The broad demand for the company's new offerings during the holiday season helped fuel performance and also has the company thinking that its total market opportunity is larger than it initially assumed. This is something that another brand powerhouse, Motley Fool Stock Advisor selection Starbucks
It's particularly impressive that Coach has kept up this performance, given that just about every retailer has begun to increase its offerings in the handbag market in the last couple of years. Some companies, such as Kenneth Cole Productions
Assuming that Coach can grow at half of these rates for a few more years, I'd say the shares are reasonably priced. I wouldn't want to bet against that.
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