Coach Rallies On “Excellent” Quarter

Coach stock is up 5% after its CEO said the current quarter� us going really swell at a New York conference.

Shares of Coach (COH) were up 5%, or $3.63, to $77, which is about 30 cents below the stock’s 52-week high. Chief Executive Lew Frankfort disclosed at a Bank of America Merrill Lynch consumer and retail conference that the fiscal third quarter has been “excellent.”

Frankfort pointed to emerging markets, especially China, as an area of growth for the accessories maker, though the majority of sales are in the United States and Japan.

In January, after Coach reported strong second quarter results, including double-digit same-store sales growth in China positioned to generate $300M in revenue, Credit Suisse analysts Christian Buss and Bilun Boyner said this about the international strategy:

“The company continues to take control over additional territories in Asia, with Taiwan retail taken direct in January, and Malaysia retail being taken over in July. We view diversification across Asia as an important piece of the international strategy, as it reduces reliance on any one economy and leverages the company�s leading position in Japan (17% of sales, $800M in revenue.) Over time we see emerging market growth opportunity to $1B-plus, driven by expansion to 200-plus stores.”

Frankfort said the company has an opportunity in male buyers, who account for about 3% of sales compared to the global luxury market, where men account for 15% to 20% of sales, according to MarketWatch.