Coach 4Q Profit Up

New York City Coach Inc. said Tuesday that fourth-quarter profit rose 32 % to $213.5 million, from $160.6 million in the year ago period.

Revenue rose 20% to $781.5 million from $652.1 million last year.

Same-store sales for the quarter ended June 28 rose 6.7% in North America. The company said volume at new stores surpassed expectations in both existing and new markets.

For the full year, net income rose 18% to $783.1 million from $663.7 million last year. Revenue rose 22% to $3.18 billion from $2.61 billion.

In a statement, Lew Frankfort, company chairman and chief executive, said the results show Coach's "ability to generate profitable growth in challenging times."

He said he expects the ongoing economic slowdown to continue into 2009.

“While our new fiscal year has just begun, we believe that the consumer malaise in the U.S. will remain well into calendar 2009, significantly impacting our business,” he said.

“Accordingly, we will plan cautiously until we see concrete evidence of a change in consumer behavior. At the same time, we expect to generate profitable growth, although at a lower rate while we are more promotional and price select new products more sharply to deliver more compelling value.”

Frankfort said fiscal 2009 will be an "investment year," as it focuses on expanding in Greater China. The company said sales growth in 2009 will be driven by distribution through new and expanded stores and higher productivity.

Coach expects to open about 40 North American retail stores, at least six U.S. factory outlets, 10 to 15 locations in Japan, as well as 30 international locations, including at least 5 in greater China. The company expects to open about 50 locations in China in the next 5 years.

In other news, the company reportedly is looking into a more upscale freestanding retail concept that it would launch in 2010.