By Melodie Warner Coach Inc.'s (COH) fiscal fourth-quarter earnings rose 24% as the maker of high-end leather-goods topped sales expectations and improved its margins. But shares were trading 8.8% lower at $55.25 premarket as Coach described fiscal 2013 as "an investment year" in which it will accelerate the acquisition of domestic-retail operations in key Asian markets, including those in Malaysia and Korea. The stock has fallen 6.2% so far this year through Monday's close. "Our goals remain unchanged," said Chairman and Chief Executive Lew Frankfort. "We're committed to achieving double-digit top- and bottom-line growth over our planning horizon. We have a business model that generates significant cash flow and we're in a position to invest in our brand while continuing to return capital to shareholders." he added. The luxury handbag and accessories maker's profit has grown 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 June 30, Coach reported a profit of $251.4 million, or 86 cents a share, up from $202.5 million, or 68 cents, a year earlier. Sales jumped 12% to $1.16 billion. Analysts polled by Thomson Reuters had most recently forecast earnings of 85 cents on revenue of $1.2 billion. Gross margin improved to 72.6% from 71.8%. Direct-to-consumer sales, which now include Singapore and Taiwan, increased 13% to $1.05 billion. Same-store sales rose 1.7% in North America. Sales were up 16% in Japan, on a constant-currency basis. China, which the company has called its largest geographic growth opportunity, saw 60% sales growth. Indirect sales were flat at $108 million as international wholesale shipments increased, while shipments into U.S. department stores declined. Write to Melodie Warner at melodie.warner@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires
