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Coach Q3 profits rise

US bag and accessories brand Coach has reported a 21% increase in its third quarter profit for the three months to March 31.

The luxury handbag brand saw net income for the period increase to $225m (£139.8m), up from $186m (£115.5m) in the same quarter a year ago.

Quarterly sales grew 16.6% to $1.11bn (£690m) versus sales of $950.7m (£590.5m), a year earlier.

Coach said that significant changes in its pricing model at outlet stores and growth in its Chinese business were the main reasons for the sales and profits increase.

In a move to be seen as a global lifestyle brand Coach is increasing its price points so that it has a larger mix of higher-priced merchandise.

Fewer promotions for the brand helped expand its gross margins for the quarter to 73.8% of sales versus margins a year ago of 72.8%.

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