US accessories brand Coach saw first quarter net income rise on the back of strong performances in North America and China.

The company recorded a 3% increase in net income over the quarter ended 29 September to reach US$221m.

Sales rose 11% over the period to reach $1.16bn. Operating income rose 3% to $332m, while operating margin fell to 28.6% from 30.7%. The company attributed the decline to long-term growth investments, particularly in Asia.

North American sales increased 8% to $784m, as direct sales grew 11% and comparable store sales rose 5.5%. International sales increased 15% to $362m. Chinese sales increased 40% as comparable store sales in the country rose at a double-digit rate. 

"We were pleased with our results this quarter, highlighted by double-digit top line growth, with strong comparable stores sales - most notably in North America and China," said chairman and CEO Lew Frankfort.

"We continued to make progress against our strategic initiatives - enhancing our leadership position in the North American women's bag and accessory category through fashion innovation, aggressively growing our international business, becoming a market leader in the Men's accessories category and harnessing the power of the digital world. In addition, during the quarter, we completed the acquisition of our domestic distributors in Korea and Malaysia."