Coach and Primark top market estimates

In another session dominated by corporate releases,

Coach Inc. said Tuesday its fiscal third-quarter net income rose to 238.9 million dollars, or 84 cents a share, from 225 million dollars, or 77 cents a share, a year ago.

The luxury handbags maker´s quarterly net sales rose to 1.19 billion dollars, ahead of the 1.11 billion dollars reported a year earlier and compared to analysts polled by FactSet expectations of earnings of 80 cents a share and revenue of 1.18 billion dollars. Coach said it will raise its cash dividend by 15 cents a share annually to an annual rate of 1.35 a share beginning in July. Shares rose 8.7 percent in premarket trade Tuesday, to rise by 5.63 dollars or 11.13 percent to 56.22 dollars in the afternoon session.

"Internationally, our business is growing rapidly, with China in particular continuing to post excellent gains, and is now on course to generate about 425 million dollars in sales this year," said Victor Luis, president and chief commercial officer. Reed Krakoff, president and executive creative director, will leave the company in June 2014, when his contract expires, to focus on his own brand, the company revealed on Tuesday.

In the UK, Primark's chief executive, George Weston, highlighted that "It's had an absolutely brilliant to the start of the year. We think the stores are looking great and the spring/summer merchandise is doing great and we're just waiting for some warmth to get even more people in. What we attempt to do is sell clothes which are on fashion at lower prices than anyone else in good high street locations with great stores. When we get it right shoppers respond."

Primark said it benefitted from a low cotton price, a weaker US dollar and from fewer promotions. The affordable clothing chain, owned by Associated British Foods (ABF), drove sales growth for the group by 24 percent. City cheered the results as ABF shares hit an all-time high, up 96 pence to 19.46 pounds.