* Plans to open 30 more China locations in FY 2011

(Adds Wall Street estimates, FY 2011 view, China store count)

NEW YORK (Reuters) - Coach Inc reported
better-than-expected quarterly sales and earnings on Tuesday as
the U.S. leather goods maker saw North American demand continue
to pick up and sales in China rise.

Net income for the fourth quarter, which ended July 3,
rose 34.1 percent to $195.5 million, or 64 cents per share,
from $145.8 million, or 45 cents per share, a year earlier. The
earnings beat Wall Street forecasts of 56 cents per share,
according to Thomson Reuters I/B/E/S.

Coach, which is based in New York and makes handbags,
shoes, wallets and other accessories, reported sales rose 22.2
percent to $950.5 million. The period included an extra week,
without which Coach said sales would have been up 13 pct during
the quarter.

Coach's gross margins rose 2.9 percentage points to 73.3
percent as the company lowered sourcing costs.

In a statement, Chief Executive Lew Frankfort said he was
confident Coach sales and profits could continue to rise at a
double-digit pace, aided in part by global expansion --
particularly in China, and in Western Europe as well, where
Coach is just entering the market.

Sales at North American stores open at least a year rose
6.3 percent during the quarter. For the full year, retail sales
in China doubled. Coach operated 41 stores in China as of July
3, with plans to open another 30 locations there this fiscal

Coach reported shipments in its wholesale business to U.S.
department stores were flat during the quarter compared with a
year earlier.

Coach operates 342 retail stores and 121 factory outlets in
North America.
(Reporting by Phil Wahba, editing by Gerald E. McCormick)