Coach, Inc. Enters into Amendment No.3 to the Credit Agreement
Sep 10 14
On September 9, 2014, Coach, Inc. announced that it entered into Amendment No.3 to the company's Credit Agreement, dated as of June 18, 2012, as amended by Amendment No. 1, dated as of March 26, 2013, and by Amendment No. 2, dated as of November 27, 2013 (the Existing Credit Agreement" and, as amended by the Amendment, the Amended Credit Agreement"), among the company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of banks and financial institutions. Under the Amendment, the maturity date of the senior unsecured revolving credit facility has been extended to September 9, 2019. The maturity date under the Existing Credit Agreement was March 26, 2018. In the ordinary course of their business, the Lenders and certain of their affiliates have in the past or may in the future engage in investment and commercial banking or other transactions of a financial nature with the company or its affiliates, including the provision of certain advisory services and the making of loans to the company and its affiliates. In particular, certain affiliates of the Lenders are agents and/or lenders under the Amended Credit Agreement.
Coach, Inc. Appoints Gebhard Rainer as President and Chief Operating Officer, Effective September 29, 2014
Sep 9 14
Coach, Inc. announced the appointment of Gebhard Rainer, as President and Chief Operating Officer, effective September 29, 2014. Mr. Rainer joins Coach from Hyatt Hotels Corporation, where he most recently held the position of Executive Vice President and Chief Financial Officer. Previously, Mr. Rainer served as Managing Director for Hyatt International Europe, Africa and Middle East (EAME) LLC from January 2007 to August 2012 overseeing all aspects of the company's business in the region. Mr. Rainer has more than 30 years of experience in progressively more senior operating and finance roles, and has extensive international experience, having lived in the Caribbean, the Middle East, Eastern Europe, Western Europe, and the United States. Mr. Rainer is filling a position that has been vacant since September 2013. As Chief Operating Officer, he will have responsibility for Finance, Information Systems, Logistics, Operations and Production.
Coach, Inc. Declares Quarterly Cash Dividend Payable on September 29, 2014; Announces Unaudited Consolidated Financial Results for the Fourth Quarter and Year Ended June 28, 2014; Provides Financial Guidance for the Fiscal Year 2015; Announces Expansion Plans
Aug 5 14
Coach, Inc. announced that its board of directors declared a quarterly cash dividend of $0.3375 per common share, maintaining an annual rate of $1.35. The dividend is payable on September 29, 2014 to shareholders of record as of the close of business on September 10, 2014. The holders of depositary receipts will be entitled to such dividend at the rate of $0.3375 for each 10 depositary receipts held, provided that they acquire the depositary receipts on September 5, 2014, as the ex-dividend date for the depositary receipts is September 8, 2014. Holders of depositary receipts purchased on or after September 8, 2014 will not be entitled to such dividend. JPMorgan Chase Bank, N.A., as depositary for the depositary receipts, will effect payment of such dividend to holders of depositary receipts entitled thereto as soon as practicable, which is currently expected to be after September 29, 2014 but no later than October 10, 2014. The US quarterly dividend of $0.3375 per common share, which after adjusting for the common share/HDR ratio (each depositary receipt represents an ownership interest in one tenth of one common share), and based on the United States dollar/Hong Kong dollars exchange rate of 7.7501 as of August 4, 2014, results in a Hong Kong dollar amount of the declared gross dividend of approximately HKD 0.261566 per depositary receipt. The final amount of the dividend in Hong Kong dollars will be determined on September 30, 2014; and where applicable, fees, charges and/or taxes may be deducted by the HDR depositary from the dividend payable to holders of depositary receipts, details of which will be announced in due course.
The company announced unaudited consolidated financial results for the fourth quarter and year ended June 28, 2014. For the quarter, net sales were $1,136,216,000 against $1,222,688,000 a year ago. Operating income was $99,788,000 against $317,754,000 a year ago. Income before provision for income taxes was $100,317,000 against $317,757,000 a year ago. Net income was $75,275,000 or $0.27 per basic and diluted share against $221,343,000 or $0.78 per diluted share a year ago. Non-GAAP operating income was $231,295,000 against $370,956,000 a year ago. Non-GAAP income before provision for income taxes was $231,824,000 against $370,959,000 a year ago. Non-GAAP net income was $163,556,000 or $0.59 per diluted share against $253,911,000 or $0.89 per diluted share a year ago.
For the year, net sales were $4,806,226,000 against $5,075,390,000 a year ago. Operating income was $1,120,074,000 against $1,524,541,000 a year ago. Income before provision for income taxes was $1,122,255,000 against $1,520,526,000 a year ago. Net income was $781,336,000 or $2.79 per diluted share against $1,034,420,000 or $3.61 per diluted share a year ago. Non-GAAP operating income was $1,251,581,000 against $1,577,743,000 a year ago. Non-GAAP income before provision for income taxes was $1,253,762,000 against $1,573,728,000 a year ago. Non-GAAP net income was $869,617,000 or $3.10 per diluted share against $1,066,988,000 or $3.73 per diluted share a year ago.
For the fiscal year 2015, the company is investing to achieve long-term sustainable growth and a return to profitability over planning horizon. The company expects CapEx for to be in the area of $350 million, excluding the costs associated with the new headquarters, which are now expected to be approximately $100 million, given construction timing estimates.
The company expects to open a few stores in other direct Asia markets outside of China and Japan in fiscal year 2015, portfolio approach is focused on maximizing productivity, with only modest growth of footprint.