Coach Inc., known for its Poppy handbags, reported better-than-expected quarterly revenue and profit, helped by higher sales in international markets such as China.

The company’s shares were up almost 7 percent in premarket trading on Tuesday.

Coach, founded in 1941 in a Manhattan loft, has been struggling against fast-growing rivals such as Michael Kors Holdings Ltd in North America, its biggest market.

The company said in June it would spend more on marketing and hold sales twice a year to win back customers and that it would close about 70 stores in North America.

Coach said it recorded charges of about $132 million related to store closures and inventory adjustment in the fourth quarter ended June 28. It also expects charges in the current year.

Coach’s international sales rose 7 percent in the quarter, partly offsetting a 16 percent fall in sales in North America, which accounts for 61 percent of Coach’s net sales.

In contrast, Michael Kors’ sales rose 30 percent in North America.

Coach’s net sales fell 7 percent to $1.14 billion in the quarter, beating the average analyst estimate of $1.09 billion, according to Thomson Reuters I/B/E/S.

Net income fell 66 percent to $75.3 million, or 27 cents per share. Excluding items, it earned 59 cents per share.

Analysts on an average had expected earnings of 53 cents. (Reuters)