Coach shares rally 12% on strong earnings

coachtop.pngClick chart to track Coach's stock. By Hibah Yousuf, staff reporter


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.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,037.97 -42.17 -0.23%
Nasdaq 5,060.25 -31.84 -0.63%
S&P 500 2,108.92 -8.77 -0.41%
Treasuries 1.92 0.01 0.37%
Data as of 6:26pm ET
Company Price Change % Change
Applied Materials In... 19.97 -1.83 -8.39%
Apple Inc 132.65 2.37 1.82%
Bank of America Corp... 15.56 -0.08 -0.51%
Microsoft Corp 48.03 0.16 0.33%
Pfizer Inc 34.59 -0.68 -1.93%
Data as of 4:04pm ET

Sections

If Yankees follow through on threat not to pay A-Rod $6 million for reaching first home run milestone, the union is likely to fight for the money for him. More

A major earthquake was the last thing Nepal needed. Even before one of the country's major fault lines rumbled to life, the country was beset by challenges. More

Tech devices -- from drones to Raspberry Pis -- got a lot of love onstage at the 2015 Matrix Awards honoring powerful women. Here's why. More

A Girl Scouts Cookie Oven rolling out to Wal-Mart, Target, Kmart stores this summer will let you bake those iconic thin mints right at home. More

Imagine having a three-day weekend every week and being paid the same full-time salary. It can be done if your employer offers you the option of a compressed workweek. More