New York-based Coach saw sales climbed 17 per cent in the third quarter to $1.11 billion from $951 m in the previous year, sources reported.

An annual rate per share of $1.20 will now be paid to investors, beginning in July. Net income rose 21 per cent to $225 million during the period, with net earnings increasing by almost a quarter (24 per cent) from $0.62 to $0.77.

Lew Frankfort, chairman and CEO at Coach, said: "The announcement today of a 33 per cent increase in our dividend reflects our financial strength and our confidence in Coach's business outlook," he commented. Frankfort added that, following such a successful quarter, Coach is confident it will continue to experience double digit earnings growth.