Coach, known for its Poppy handbags, reported better-than-expected sales for the first time in four quarters, helped by strong demand in international markets, especially China.
New York-based Coach's shares rose nearly 5 percent after the company also said it was "strongly committed'' to paying a dividend, allaying analysts' concerns about the sustainability of its payouts.
Coach, founded in 1941 in a Manhattan loft, is looking to grow its brand of affordable luxury goods in Asia and Europe as it loses ground in its biggest market, North America, to fast-growing rivals such as Michael Kors.
While Coach sells its handbags, shoes and clothes at a discount in North America, it commands full prices abroad.
That helped international sales rise 7 percent in the fourth quarter ended June 28, with China sales rising 20 percent.
The company expects sales in China to rise 10 percent in the year ending June 2015 as it opens more stores to expand in tier 3 and tier 4 cities.
Coach's results in China contrasted with those of LVMH, the No.1 maker of luxury goods, which reported lower sales from the region due to government efforts to crack down on corruption and conspicuous spending.