by Christopher Freeburn | April 23, 2013 9:50 am
Shares of Coach (NYSE:COH) surged more than 11% in Tuesday morning trading after the luxury handbag-maker posted a 40% sales jump in China and raised its dividend.
Third quarter earnings climbed to $239 million, up from $225 million during the same period last year. EPS came in at 84 cents, easily beating the 80 cents that Wall Street was expecting, Reuters noted.
Coach posted quarterly revenue of $1.19 billion, up 7% from last year. That narrowly topped analysts, who had anticipated $1.18 billion in revenue.
The company announced that it would pay shareholders a dividend of $1.35 a share, up 13% from its prior dividend.
North American same-store sales only grew about 1% compared to last year. Including online transactions, overall North American sales rose 7%.
Overseas sales hit $382 million, up 6%. The spike in Chinese sales mostly fueled that gain.
In February, Coach shares rose on rumors that the company might be looking for a buyer.
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