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• Coach’s Q4 Profit Surges, Beating View (COH)
• Coach’s Estimates Upped at Goldman Sachs (COH)

• COH 100% Rate It

Luxury handbag maker Coach, Inc. ( COH ) on Tuesday posted better-than-expected fourth quarter earnings, fueled by higher sales of its trademark products in the U.S. and abroad.

The New York-based company reported fiscal fourth quarter net income of $195.5 million, or 64 cents per share, compared with $145.8 million, or 45 cents per share, in the year-ago period.

On average, Wall Street analysts expected a smaller profit of 56 cents per share.

The earnings beat was driven by a 22.2% jump in quarterly sales, which rose to $950.5 million. Excluding the positive effects of an extra week in this year's period, sales would have risen 13%.

The company also noted that its gross margins rose 2.9 percentage points in the period, to 73.3%, due to lower outsourcing costs.

Coach shares rose 57 cents, or +1.5%, in premarket trading Tuesday.

The Bottom Line
We had removed shares of COH from our recommended list back on May 17, when the stock was trading at $40.06. The company has a 1.56% dividend yield, based on last night's closing stock price of $38.43. The stock has technical support in the $35-$36 price area. If the shares can firm up, we see overhead resistance around the $44-$45 price levels. We would remain on the sidelines for now.

Coach, Inc. ( COH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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