Coach Provides Third Quarter Business Update; Earnings of At Least $0.27 Projected, Ahead of Analysts' Expectations.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 27, 2002

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

The Company now expects that fiscal third quarter earnings for the period ending March 30, 2002, will be at least $0.27 per fully diluted share, compared with the prior year's $0.17. The published range of analysts' estimates is currently $0.21-$0.22 per diluted share.

Preparing to address investors at the Bear Stearns Retail, Restaurants & Apparel Conference in New York, Lew Frankfort, Chairman and Chief Executive Officer of Coach, Inc. said, "The momentum that built during the holiday season has clearly continued into the third fiscal quarter with U.S. comparable store sales trending ahead mid-single-digits over last year's levels. Consumers have embraced our spring designs, including the new styles and colors in our Signature handbags and women's accessories, Girlie bags, Hamptons carryalls and Duffle Sac offerings. In addition, our robust Valentine's Day results continue to validate Coach as a leading gift resource." Mr. Frankfort added, "Our revised third quarter expectations are due to higher sales projections in combination with significant gross margin expansion and tight expense control."

"We have strong brand equity and proven growth strategies. Looking ahead, I'm confident that our well-received spring offering, fueled by consistent product flow, will ensure continued financial momentum through the fourth quarter. We now expect fiscal year 2002 sales and fully diluted earnings per share of at least $695 million and $1.83, respectively. This is based on achieving second half earnings of $0.56 per fully diluted share, up from previous guidance of $0.46 provided in our January 23 conference call," Mr. Frankfort concluded.

Coach will present at the Bear Stearns Retail, Restaurants & Apparel Conference on March 1, 2002 at 9:00 a.m. (EST). 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.bearstearns.com/conferences/retail2002/ or www.coach.com/investors.

Results for the third fiscal quarter, which will end on March 30, 2002, are expected to be reported before the opening of the market on April 23, 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, luggage and travel accessories, footwear, watches, outerwear, jewelry, 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 800-262-2411 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.