Shares of Coach soared as much as 11 percent Tuesday after sales rose for the first time in 10 quarters. Bobbi Rebell reports.
Coach is on a comeback. The handbag maker posting its first sales growth in 10 quarters. Its acquisition of luxury shoe brand Stuart Weitzman is helping, and its sales in China are still growing despite that country's economic challenges. But there is still a ways to go, says Telsey Advisory Group CEO Dana Telsey: SOUNDBITE: DANA TELSEY, CEO, TELSEY ADVISORY GROUP (ENGLISH) SAYING: "I think they are still in the midst of the transformation. They are in the midst of updating the stores. They are in the midst of enhancing the product, and they are in the midst of continuing to transform the brand in the mind of the consumer." Telsey says that the consumer is a challenge for all retailers- because spending priorities are shifting away from material goods like accessories to experiences like travel and dining. Wunderlich Securities' Art Hogan says Coach faces other challenges. SOUNDBITE: ART HOGAN, CHIEF MARKET STRATEGIST, WUNDERLICH SECURITIES (ENGLISH) SAYING: "It's a difficult business and it's got other competition from Kate Spade and Vera Bradley and Michael Kors." But the earnings news was cheered by investors, who sent the stock soaring as much as 12 percent on Tuesday.