Coach 2Q profit grows 15 percent

[January 24, 2012]  NEW YORK (AP) -- Luxury bag maker Coach says strong demand for its luxury handbags during the holidays helped fiscal second quarter net income rise nearly 15 percent.

The luxury sector has been a bright spot in U.S. retail as the affluent keep spending while other sectors have been slower to recover from the recession. Coach says its international division and its growing men's business did well during the key holiday selling quarter ended Dec. 31. A lower tax rate also helped results.

The New York company says net income rose to $347.5 million, or $1.18 per share, from $303.4 million, or $1 per share in late 2010. That beat analyst expectations of $1.15 per share.

Revenue rose 15 percent to $1.45 billion from $1.26 billion. Analysts expected revenue of $1.43 billion.

[Associated Press]

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