Coach Provides First Quarter Business Update; Earnings of At Least $0.21 Projected, Ahead of Analysts' Expectations.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 3, 2002

Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, announced that its first quarter results to date are tracking significantly ahead of plan.

The Company now expects that fiscal first quarter sales and earnings for the period ending September 28, 2002 will increase to $185-$190 million and at least $0.21 per diluted share, respectively. This compares with prior year's sales of $150.7 million and earnings of $0.14 per share. The analysts' consensus estimate is currently $0.18 per diluted share.

Preparing to address investors at the Goldman Sachs Global Retailing Conference in New York later this week, Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc., said, "The momentum that was evidenced throughout the spring has clearly continued into the first fiscal quarter in all businesses, with U.S. comparable store sales trending ahead more than 10% over last year's levels. Over the summer, consumers responded strongly to our transitional handbag and accessory offerings. Customers are also embracing our just-introduced fall handbags in leather and suede combinations, including new styles of Hamptons which feature proprietary hardware and the new Ergo group which is based on designs from our archives." Mr. Frankfort added, "Our increased first quarter expectations are due to higher sales projections and significant margin expansion."

"We have strong brand equity and proven growth strategies. Looking ahead, I'm confident that our well-received new offerings, fueled by consistent product flow and a focussed gift assortment, will ensure continued superior financial results through the important holiday quarter and into calendar 2003. We now expect fiscal year 2003 sales of at least $835 million and diluted earnings per share of at least $1.20," Mr. Frankfort concluded.

Separately, the company reported that it had repurchased and retired 1,929,000 shares of common stock at an average cost of $25.89, thus far in the fiscal quarter. At the end of August approximately $20 million remained available for future repurchases under the program which expires in September 2004.

Coach will present at the Goldman Sachs Global Retailing Conference on September 6, 2002 at 11:00 a.m. (EDT). The audio portion of the presentation will be webcast live and archived for a period of five business days and is available to the general public. To access the live audio portion of the presentation, log onto www.coach.com/investors or:

https://www.gs.com/ir/conf
Username: conference/conf3
Password: goldman3

Results for the first fiscal quarter, which will end on September 28, 2002, are expected to be reported before the opening of the market on October 22, 2002 and to be discussed in a management-sponsored conference call at 8:30 a.m. (EDT) and simultaneous webcast that day on the Internet at www.coach.com.

Coach, with headquarters in New York, is a leading American marketer of fine accessories and gifts for women and men, including handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, jewelry, sunwear, furniture and related accessories. Coach is sold worldwide through Coach stores, select department stores and specialty stores, through the Coach catalogue in the U.S. by calling 1-800-223-8647 and through Coach's website at www.coach.com. Coach's shares are traded on The New York Stock Exchange under the symbol COH.

This press release contains forward-looking statements based on management's current expectations. These statements can be identified by the use of forward-looking terminology such as "may," "will," "should," "expect," "intend," "estimate," "are positioned to," "continue," "project," "guidance," "forecast," "anticipated," or comparable terms. Future results may differ materially from management's current expectations, based upon risks and uncertainties such as expected economic trends, the ability to anticipate consumer preferences, the ability to control costs, etc. Please refer to Coach's latest Annual Report on Form 10-K for a complete list of risk factors.