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 16,262.56 89.32 0.55%
Nasdaq 4,034.16 11.47 0.29%
S&P 500 1,842.98 12.37 0.68%
Treasuries 2.63 -0.01 -0.42%
Data as of 1:53am ET
Company Price Change % Change
Bank of America Corp... 16.39 0.00 0.00%
Facebook Inc 59.09 0.20 0.34%
Yahoo! Inc 34.21 0.76 2.29%
The Coca-Cola Co 40.18 1.45 3.74%
Intel Corp 26.77 0.21 0.79%
Data as of Apr 15

Sections

GM CEO Mary Barra announced that the automaker has created a new "global product integrity" unit to ensure that a" situation like the ignition-switch recall doesn't happen again." More

Observers are warning that risks of a blow up in China's property market are rising, threatening a slowdown that could hurt global growth. More

Yahoo is still in the midst of its turnaround, but investors liked what they saw in the company's first-quarter results. More

Schwinn, Trek and Cannondale are all iconic American bicycle brands. But none of them are made in the United States. More

In its ongoing battle to fight blight, Detroit is launching a website where it will auction off vacant homes seized in tax foreclosures. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.