Article: Coach Reports Third Quarter Earnings Per Share of $0.23; Up 51% and Ahead of Expectations; Raises Guidance for FY05; Announces Buyout of Coach Japan Joint Venture Partner.

NEW YORK -- Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, today announced a 51% increase in earnings per diluted share to $0.23 for its third fiscal quarter ended April 2, 2005. This substantial increase in earnings from the prior year's third quarter reflected a 33% gain in net sales combined with operating margin improvement. 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.

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