Coach is back in the game! Shares of the luxury handbag maker jumped 10% Tuesday after the company blew past earnings and revenue expectations thanks to solid sales growth around the world.
Overall revenue climbed 7% during the fiscal third quarter to $1.19 billion, with sales rising 7% in North America and 6% in international markets. Sales in China were among the strongest, climbing a whopping 40%.
"We're pleased with...the progress we're making toward out transformation to a global lifestyle brand, anchored in accessories," said Coach CEO Lew Frankfort.
Shareholders were also pleased as Coach (COH) announced that it will increase its annual dividend by 13% to $1.35 a share.
As Coach shares recovered to their highest levels in January, other luxury retailers were also taking off. Shares of Michael Kors (KORS) were up almost 4%, while shares of Ralph Lauren (RL) and Vera Bradley (VRA) rose more than 2%.
Coach's strong results gave traders on StockTwits plenty to talk about.
Coach and Michael Kors may be in fashion, for now, but Netflix (NFLX) also is flying high as the S&P 500's best-performing stock so far this year.
Shares of Netflix were up almost 25% Tuesday, after the company handily beat earnings forecasts, a sign that its original series "House of Cards" is paying off. And Netflix, like Coach, was a stock that many analysts and investors had left for dead not that long ago.
That's a good point. In January, Coach shares tumbled 16% on the day the company's quarterly sales missed forecasts due to "challenging" holiday sales. And despite Tuesday's big rally, shares are still more than 10% below their highest point of the year, and almost 30% short of its 52-week high from last May.
But for the most part, traders are optimistic that Coach's results for the latest quarter are a sign of strength for the entire luxury retail market, particularly Kors and Ralph Lauren.
"As you know in fashion, one day you're in. And the next day, you're out." That's one of Heidi Klum's catchphrases on "Project Runway." You can say the same about stocks. And for now, Ralph Lauren is decidedly in.
Shares of Ralph Lauren (RL) galloped (see what I did there) to a more than 7% gain on Wednesday after the company reported earnings that topped forecasts and issued a solid sales MOREPaul R. La Monica - Feb 6, 2013 12:08 PM ET
Retailers who were hoping for some holiday cheer have found coal in their stockings this year.
According to MasterCard's (MA) SpendingPulse report, retail sales leading up to Christmas rose a paltry 0.7% from last year, which wasn't exactly a stellar year for retailers either. And it was far below the 3% to 4% analysts had expected.
It's been a couple of tough months for retailers, no thanks to Superstorm Sandy. Sales fell MORECatherine Tymkiw - Dec 26, 2012 12:26 PM ET
Fossil's stock took a beating Tuesday, making it the second-worst performer on the S&P 500 (SPX) and Nasdaq (COMP), after the company reported weak revenue and cut back its sales outlook for the current quarter.
Fossil (FOSL) reported third-quarter sales of $684.2 million, falling short of the $713.1 million analysts had expected. Earnings fared better. Fossil beat earnings-per-share forecasts by 9 cents. But Europe, once again, reared its ugly head MORECatherine Tymkiw - Nov 6, 2012 12:30 PM ET
The luxury business is booming. Or at least it is for Michael Kors (KORS), the lifestyle brand founded by the Project Runway judge and fashion mogul of the same name.
In its second quarterly report as a public company, Michael Kors (the company) said earnings nearly tripled, easily surpassing forecasts. Sales surged 71% and the Hong Kong-based company also raised its outlook. Investors cheered the results. Shares of Michael Kors surged MOREBen Rooney - Aug 14, 2012 11:24 AM ET
Fossil shares soared more than 30% Tuesday, leading gains on the S&P 500 (SPX) and Nasdaq (COMP), after the company trounced earnings expectations and impressed investors with its profit forecast for the year.
Fossil (FOSL) reported a second-quarter profit of $57.3 million, or 92 cents per share, up almost 12% from a year ago. And revenue jumped 13% during the quarter.
The biggest sales increase came from Asia, where sales soared more MOREHibah Yousuf - Aug 7, 2012 1:46 PM ET
Put me in Coach (COH)? Not today. Shares of the luxury handbag maker plunged 15% Tuesday morning after the company reported that sales missed forecasts. Of particular concern is the fact that Coach's CEO pointed to sluggishness in North America. Coach indicated that its rivals are more aggressively discounting merchandise and that Coach is likely to step up with price cuts too.
Is that bad news for other luxury retailers? Perhaps. MOREPaul R. La Monica - Jul 31, 2012 9:50 AM ET
What's Holly Golightly to do? Breakfast at Tiffany's is a decidedly ugly affair Thursday morning. Shares plunged more than 7% in heavy pre-market trading after the jeweler reported earnings that missed estimates and also issued guidance for the fiscal year that was below forecasts.
Is the bad news from Tiffany (TIF) a sign that even the most affluent of consumers around the world are starting to feel the pinch from what MOREPaul R. La Monica - May 24, 2012 8:01 AM ET
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