The New York City-based fashion retailer, which operates morethan 500 stores in the US and abroad, said net sales for the periodending April 1 were up 20% to $498 million, an $82-million increasecompared to the $416 million reported during the same quarter lastyear. Earnings per diluted share stood at 28 cents, up from 21cents a year earlier, beating analysts' expectations of 27 centsfor the quarter. Company execs said they will accelerate new storeopenings over the next few quarters, adding 12 new US retail shopsin the fourth quarter and expanding by at least 85 locationsglobally during fiscal 2007 to give Coach more than 600 stores byyear's end.

The company, which opened stores in three new US markets andadded three retail locations to its Japan operations during thequarter, said direct-to-consumer sales showed a 22% increase forthe three-month period, with comparable US store sales rising21.1%. In Japan, one of the firm's strongest markets, sales rose23% on a constant-currency basis.

"Our business this April has continued strong," said Frankfort,noting that the results reflect the firm's successful distributionstrategy in Japan, where it has accelerated retail openings andexpanded its existing stores.