NEW YORK (AP) — Coach Inc. reported a 3 percent increase in first-quarter profits as the luxury accessories retailer's results were powered by strong sales in the U.S. and overseas, particularly China.
The New York-based retailer also said Tuesday that its board authorized the repurchase of up to $1.5 billion of its outstanding stock by June 30, 2015.
Coach's shares rose $4.18, or 7.7 percent, to $58.35 in late trading after rising as high as $59.77 earlier in the session. That is still well below their 52-week high of $79.70 in March.
In a statement, Lew Frankfort, chairman and chief executive of Coach, said the company was "well positioned for the holiday season." He also noted Coach continues to make progress in fashion innovation, expanding its international business, becoming a leader in men's accessories and harnessing the power of the digital world.
Coach reported net income of $221.4 million, or 77 cents per share in the three-month period ended Sept. 29. That compares with $215 million, or 73 cents per share, in last year's quarter.
A reduction in the number of outstanding shares gave the earnings-per-share results a boost of about 2 cents.
Revenue rose 11 percent to $1.16 billion in the quarter.
Analysts, on average, had expected 75 cents per share on 1.16 billion in revenue, according to FactSet.
Revenue at its North American stores opened at least a year rose 5.5 percent. The figure is a key gauge of a retailer's health, because it excludes results from stores recently opened or closed.
Total North American sales increased 8 percent to $784 million. Its North American online sales rose 11 percent.
During the summer, Coach reinstated coupons at its factory stores because of increased discounting among retailers.