DOW JONES NEWSWIRES Coach Inc.'s (COH) fiscal third-quarter earnings rose 21% on strong sales in China as the company also raised its dividend 33%. The luxury handbag, accessories and leather-goods maker has seen its profit grow for over two years on the strength of its North American direct-to-consumer businesses and global expansion. The company also is broadening its men's business with more male-oriented products and by opening men's stores in the U.S. and Japan. But customers' growing concerns about the global economy may temper Coach's momentum. For the quarter ended March 31, Coach reported a profit of $225 million, or 77 cents a share, up from $186 million, or 62 cents, a year earlier. Excluding items such as tax adjustments and charitable contributions, earnings were 62 cents a share in the year-earlier quarter. Sales jumped 17% to $1.11 billion. Analysts polled by Thomson Reuters had most recently forecast earnings of 75 cents on revenue of $1.11 billion. Gross margin rose to 73.8% from 72.8%. Direct-to-consumer sales, which now include its Singapore business, increased 18% to $984 million. Same-store sales rose 6.7% in North America. Sales were up 10% in Japan, on a constant-currency basis. China, which the company has called its largest geographic growth opportunity, saw sales grow 60%, driven by distribution growth and double-digit same-store sales. Indirect sales rose 10% to $125 million. Coach's board voted to increase the cash dividend to an annual rate of $1.20 from 90 cents, starting with the dividend to be paid in July. Shares closed Monday at $75.12 and were inactive premarket. The stock is up 23% so far this year. -By Melodie Warner, Dow Jones Newswires; 212-416-2283; melodie.warner@dowjones.com
