US leather-goods retailer Coach, Inc. on Tuesday said sales rose 19 percent to USD1.26 billion for the second fiscal quarter ended on 1 January 2011 from USD1.07b last year. Net income for the quarter jumped 26 percent to USD303 million.

Direct-to-consumer sales increased 17 percent to USD1.10b from USD934m last year. Japan sales were even on a constant-currency basis, while dollar sales rose 8 percent driven by a stronger yen. China sales remained robust, as POS sales continued to comp at a double-digit rate.

Indirect sales increased 28 percent to USD168m from USD131m in the prior year.

During the second quarter of fiscal 2011, the company opened one store in Japan while a travel retail location was also added, taking the total to 171 at the end of the quarter. In China, three new locations were opened during the quarter, bringing the total to 52.

"We saw continued improvement in productivity in our retail stores, while our factory business remained remarkably strong. The most significant comp driver of our retail businesses this holiday was conversion, reflecting the strength of our product assortment and the vitality of the brand," said Lew Frankfort, chairman and CEO of Coach, Inc.

Coach takes its men's business as a key global initiative as the leather-goods maker is achieving good results in its full priced businesses in the New York City concept store, shops in Japan and retail stores that carry a broader men's assortment.

"We will capitalise on the significant growth opportunities available to us both domestically and internationally, through maximizing productivity in existing stores and expanding our distribution, as we develop our increasingly global brand," Frankfort concluded.