NEW YORK (CNNMoney.com) -- Investors bagged shares of Coach on Tuesday, pushing the stock up 12%, after the luxury handbag maker posted fiscal first-quarter earnings that trounced Wall Street's expectations.
Coach (COH) booked a profit of $189 million, or 63 cents per share, during the three months ended Oct. 2, up 34% from a year earlier, as sales jumped 20% to $912 million during the period. Analysts polled by Thomson Reuters were looking for earnings of 55 cents per share on $846 million in sales.
Same-store sales, which measure sales at stores open at least a year and are a key performance gauge, rose 8.5% in North America.
Logging its best gain in over a year, Coach's stock was Tuesday's biggest advancer among the S&P 500. And for the year, shares are up more than 36%.
Coach has been able to deliver strong performances amid the sluggish economic recovery because it captures the 'white space' between department store brands and high-end European designers' affordable luxury, said Larry Coats, co-manager of the RS Capital Appreciation Fund. Coach is among the fund's five largest holdings.
Investors were also encouraged by designer's upbeat outlook.
"We're well positioned for the upcoming holiday season and the balance of the fiscal year, and remain confident in our growth prospects and ability to drive sales and earnings at a double-digit pace, given the current strength of the Coach business and our increasing global expansion," said Coach CEO Lew Frankfort.
HSBC banker arrested at JFK airport as he prepared to leave the country. He and former trader face federal charges they manipulated currency trades. More
Bernie Sanders takes credit for forcing for forcing Hillary Clinton and the entire Democratic Party to get a lot tougher on Wall Street. But how likely is that to happen? More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Only 3% of employers offer so-called "vacation stipends" that help pay for their employees' vacations. But those that do make taking time off a must. More