New York City Coach on Tuesday posted net income of $189 million during the three months ended Oct. 2, up 34% from a year earlier. The results trounced Wall Street expectations.
Sales jumped 20% to $912 million during the period. Same-store sales rose 8.5% in North America.
"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. “Our performance also reflects the resiliency of the premium handbag and accessory category in North America, as well as significant growth in developing markets, as our globalization initiatives take hold."
During the first quarter of fiscal 2011 in North America, the company opened three stores and seven factory stores (two traditional locations and the first five men's factory stores). This brought the total to 345 retail stores and 128 factory stores as of October 2, 2010.
In Japan, Coach opened two locations, bringing the total to 169 at the end of the quarter. In China, eight new locations were opened during the quarter, bringing the total to 49.