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.
|Deficit for 2017 hits $666 billion|
|Laptops could be banned from checked airline bags due to fire risk|
|Amazon could put its second HQ in Canada. But will it?|
|Jeff Bezos's Blue Origin test fires game-changing rocket engine|
|GE's nightmare just got worse|