Coach Inc, the luxury leather accessories designer, on Monday raised its third quarter profit forecast above analysts’ expectations, after its spring range of handbags proved to be a huge success with shoppers.

For the quarter ending March 29, 2003, the leading New York-based company expects earnings of at least $0.29 per share, compared with estimates of $0.25. Sales are expected to come in at $210 million. Coach also expects sales in stores open at least a year to climb at least 10%, driven by the strength of sales in its full prices stores.

For the fourth quarter, the American retailer said it expects earnings of at least $0.25 per share on sales of $205 million. It projects 2003 fiscal year sales of $915 million and profits of $1.46 per share.

Coach’s chief executive Lew Frankfort said: “Consumers have responded enthusiastically to our transitional and early spring offerings, including the new styles and colours in our Hamptons Leather and Ergo handbags and most recently our mini signature logo collection. I am confident that we will achieve sustained, accelerated growth as we continue to significantly increase our share of the premium accessories market.”

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