The New York-based firm, which currently has 300 stores in theUS and 200 retail locations in 19 other countries, said it alsoopened 12 retail stores and three factory stores in the US duringthe quarter ending July 1, 2006.

The company's expansion plans come as rising demand for Coach'sleather handbags and accessories continue to increase, giving thecompany its fifth consecutive year of double digit sales andearnings. For the fourth quarter, sales jumped 23% while profitswere up 31%, the company said.

Net income for the fourth quarter was higher than analystsestimates at $117.6 million, or 31 cents per share, up from $89.9million, or 23 cents per share, from the same period a yearearlier. Sales also showed strong improvement, rising across alllines by 23% to $514 million with comparable store sales up 20%.Coach said sales also increased 12% in Japan due to increasedmarket share and despite lackluster growth in the category.