Coach, known for its Poppy handbags, reported a better-than-expected quarterly profit, helped by strong demand for its products in China, sending its shares up about 5 percent in premarket trading.
Coach, founded in 1941 in a loft in Manhattan, has been ramping up efforts to boost sales in Asia and Europe as it loses ground in its biggest market, North America.
Coach's North America sales dropped 19 percent, while China sales increased 10 percent in the first quarter ended Sept. 27. China accounted for about 11 percent of total revenue in the year ended June 28.
Coach had said it expects China sales to rise 10 percent, topping $600 million in the year ending June 2015, as it opens more stores in tier 3 and tier 4 cities.