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Coach stock surges after earnings

April 23, 2013: 12:01 PM ET

Click the chart to track shares of Coach.

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.

$NFLX Forget $KORS...$COH is where it's happening...they were in oversold territory forever while "analysts" bashed them--now what!

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.

It seems like every other earnings report they miss and beat. $COH huge gaps/moves both ways

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.

If Coach is doing well, Michael Kors should be killing it. Market expectations there are lot higher though $KORS

$KORS $COH results points to strong north american growth for $KORS. expect 28 to 40% kind of same store sales increase.

Coach is still losing share but improvement in comp suggests healthy handbag category & overall upscale spend $COH $RL $KORS

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Hibah Yousuf
Hibah Yousuf
Reporter, CNNMoney

Hibah Yousuf is a reporter at CNNMoney, where she covers stocks, bonds, commodities and currencies trading across the globe, as well as corporate earnings and other markets-related news. Prior to joining the site in 2009, she interned at Money Magazine.

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