Strong holiday boosts Coach 2Q net income, revenue

[January 25, 2011]  NEW YORK (AP) -- Luxury handbag maker Coach says a strong holiday season, particularly in North America, helped its fiscal second-quarter net income rise 26 percent.

The increase is further proof that the luxury sector is rebounding faster than other retail segments.

The New York company says net income totaled $303.4 million, or $1 per share. Revenue rose 19 percent to $1.26 billion.

Analysts expected net income of 97 cents per share on revenue of $1.21 billion, according to FactSet.

Revenue at stores open at least a year rose 12.6 percent in North America.

An increase in shipments to department stores, which ordered less during the recession, also helped results.

After being hit by a spending slowdown at the beginning of the recession, Coach began offering more bags under $300.

[Associated Press]

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