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.
Tiffany might want to change the color of its trademark blue box to green. Shares of Tiffany (TIF) rose nearly 2% Friday after the luxury retailer reported earnings that topped forecasts.
The stock is now up more than 20% year-to-date, surging even as shares of other luxury brands such as Coach (COH) and Nordstrom MOREPaul R. La Monica - Mar 22, 2013 11:34 AM ET
"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 MOREPaul R. La Monica - Feb 6, 2013 12:08 PM ET
Not a member yet?Sign up now for a free account