Coach Provides First Quarter Business Update; Earnings of at Least $0.32 Projected, up at Least 45% and Ahead of Analysts' Expectations.

NEW YORK -- Coach, Inc. (NYSE: COH), a leading marketer of modern classic American accessories, announced that its first quarter results to date are tracking ahead of plan. The company now expects that fiscal first quarter sales and earnings for the period ending October 2, 2004 will increase to more than $335 million and at least $0.32 per diluted share, respectively. This compares with prior year's sales of $258 million and earnings of $0.22 per share and represents increases of at least 30% and 45%, respectively. The analysts' consensus estimate is currently $0.31 per share. The company also expects fiscal year 2005 sales of over $1.6 billion and earnings per share of at least $1.71.

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, "We have seen robust sales continue throughout the summer and into the start of the fall season across all US business units and with the Japanese consumer worldwide. All of our key performance metrics continue to demonstrate the vibrancy of the Coach brand. And we reaffirm the first quarter comparable store sales guidance presented during our August conference call. Consumers have enthusiastically embraced our transitional and fall offerings, including the updated Soho and Hamptons Leather collections, the new sophisticated Vintage Signature lifestyle collection and the Chelsea handbag group."

Mr. Frankfort added, "We're confident that our well-received new merchandise offerings, driven by consistent product flow and strong execution, will ensure continued excellent financial results through the important holiday quarter and into calendar 2005. Looking out further, based on the vitality of the Coach brand, the uniqueness of our business model, and the growing US premium accessories category, our prospects for long term future organic growth have never been stronger."

The company also announced that it repurchased and retired 2,430,362 shares of common stock at an average cost of $39.06 during the first fiscal quarter. At this time, approximately $170 million remains available for future repurchases under the recently expanded program, which expires in August 2007.

Coach will present at the Goldman Sachs Global Retailing Conference Thursday, September 9, 2004 at 11:15 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:

http://customer.talkpoint.com/GOLD006/090804a_mk/default.asp? entity=coach (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) or www.coach.com/investors.

Results for the first fiscal quarter, which will end on October 2, 2004, are expected to be reported before the opening of the market on October 26, 2004 and to be discussed in a management-sponsored conference call at 8:30 a.m. (ET) 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, sunwear 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.