Coach profit up as China, N.America sales jump

Oct 25 (Reuters) - Coach Inc reported a higher-than-expected first-quarter profit as sales of its upscale handbags, wallets and accessories rose in North America despite the rocky economy and continued to grow in China.

Gwyneth Paltrow for Coach. The American brand celebrates its 70th anniversary this year

The company said it was ready "for another excellent holiday season." Sales at stores open at least a year rose 9.2 percent in North America and were up by a double-digit percentage in China. Business in Japan also continued to improve after being hurt earlier this year by natural and nuclear disasters.

KEY POINTS (for quarter ended Oct. 1)

Q1 2011 Estimate* Q1 2010

• Sales $1.05 bln $1.02 bln $911.7 mln


• Net income $215 mln --- $188.9 mln

EPS $0.73 $0.70 $0.63

• Gross margin 72.8 pct 74.2 pct


• * N.America same-store sales up 9.2 percent


• * China same-store sales up "double digit" percentage


• * Now targeting $300 mln in China comp sales this year


• * Indirect sales up 4 pct on modest wholesale business
  

Last week, consulting firm Bain & Co raised its growth outlook for global luxury goods for 2011, saying demand is stronger than it was in the spring.