Coach's Western Rivets Rouge bag in pebble leather.

Shares of Coach Inc. rose 3.3 percent in late morning trading after the company posted second quarter results that beat Wall Street’s consensus EPS estimate by 1 cent.

For the second quarter ended Dec. 31, the company said net income rose 17.4 percent to $199.7 million, or 71 cents a diluted share, from $170.1 million, or 61 cents, in the same year ago quarter. On an adjusted basis, earnings per diluted share was 75 cents, which beat Wall Street’s consensus estimate of 74 cents. Net sales rose 3.8 percent to $1.32 billion from $1.27 billion, with the $1.32 billion meeting Wall Street’s estimates.

Victor Luis, chief executive officer, said, “Our team delivered top-line growth in each of our reportable segments, highlighted by positive comparable store sales in North America and overall gross margin expansion. We continued to grow our business internationally, with notable strength in Europe and Mainland China, which represented significant opportunities for our brands.”

Luis added that despite the company’s “deliberate pullback” in the North America wholesale channel and currency headwinds, “we delivered double-digit earnings growth in the quarter.”

The company said by segment, total North American Coach brand sales rose 2 percent on a constant currency basis to $744 million, while North American direct sales rose 5 percent for the quarter. North American comparable-store sales rose 4 percent, but up 3 percent including the negative impact of e-commerce. The company said sales at North American department stores declined 30 percent on both a point-of-sale and net sales basis.

Internationally, Coach brand sales rose 3 percent to $448 million, and 1 percent on a constant currency basis. Greater China sales were about even with prior year in dollars, and rose 6 percent on a constant currency basis. The company said Hong Kong and Macau experienced a “significant improvement” in the quarter from previous trends. In Japan, sales rose 9 percent in dollars, but fell 2 percent in constant currency. Coach said European sales remained strong, growing at a double-digit rate in both total and comparable-store sales.

For its Stuart Weitzman brand, total sales rose 25.5 percent to $118 million, compared with $94 million a year ago. Gross profit was up 26 percent, totaling $76 million, while gross margin for the quarter was even with year ago results at 64.3 percent on a reported basis.

The ceo said the company continues to implement strategic priorities for the Weitzman brand, advancing its leadership position in fashion boots and booties and launching key global flagships alongside the Coach brand openings on Fifth Avenue in New York and on Regent Street in London.

For fiscal year 2017, the company updated revenue projections to increase in the low-single digits to reflect the “significant strengthening of the U.S. dollar.” The prior guidance was for an increase in the low-to-mid single digits. Coach is also maintaining its operating margin forecast of between 18.5 to 19 percent for fiscal 2017. Combining the revenue and operating margin forecasts, Coach is projecting double-digit growth in both net income and earnings per diluted share for the year.

Shares of Coach were trading at $37.17 around 11:16 a.m.