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