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.
Did General Motors and industry regulators fail to detect safety problems that may have led to 13 traffic deaths? A House panel has now opened an investigation, and will hold a hearing in coming weeks. More
In March 1989, British scientist Tim Berners-Lee published a paper proposing an "information management" system for his laboratory. His supervisor, Mike Sendall, scrawled some brief comments on the cover: "Vague, but exciting." More
Sanjiv Patel has invested over $1 million in his peanut company under a program that grants green cards to investors, but he may get kicked out of the country if he doesn't hire eight more people. More
3,000 Americans around the world renounced their citizenship last year. Meet five U.S. citizens who have given up their passports -- or are thinking about it -- to escape an overly complicated tax code. More