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 18,240.56 -45.18 -0.25%
Nasdaq 5,094.02 3.23 0.06%
S&P 500 2,128.20 -2.62 -0.12%
Treasuries 2.22 0.03 1.42%
Data as of 12:26pm ET
Company Price Change % Change
Apple Inc 132.49 1.10 0.84%
Bank of America Corp... 16.78 0.05 0.28%
Hewlett-Packard Co 35.07 1.24 3.67%
AT&T Inc 34.71 -0.36 -1.02%
Facebook Inc 81.21 0.73 0.91%
Data as of 12:10pm ET

Sections

Chelsea Clinton took the stage during Internet Week New York to discuss a new report that looks at the state of women around the world. More

More than 3.5 million people's sexual preferences, fetishes and secrets have been exposed after dating site Adult FriendFinder was hacked. More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More

Rents increased 4% in April from last year while home values only rose 3% during the same time period. More