Before I delve into the second-quarter results that Coach (NYSE:COH) reported yesterday, I have to take some time for a little humble pie. About a year and a half ago, I had doubts whether Coach would be able to continue growing at such a torrid pace. Well, Coach has indeed continued to grow rapidly, and in hindsight, I have to say it was pretty clear that it could.

Like Tiffany (NYSE:TIF), Coach has a strong presence in Asia, particularly in Japan. The Japanese economy is recovering and consumers are opening their wallets a bit more as wages finally begin to show signs of increasing, and Chinese consumers are just as hungry for luxury-brand goods. That leaves Coach and many other luxury retailers in an envious position. The truly amazing thing is that this phenomenon is likely to last for years, and not just a few quarters, in Asia.

In its second quarter, Coach saw sales increase 29% to $836 million, net income move up 31% to $227 million, and diluted earnings per share jump 36% to $0.94 per share from last year's $0.69 per share. The earnings-per-share performance was aided by share repurchases, but the larger net-income growth also points to a bit of operating leverage coming through as the company's expenses grow slower than its sales.

The broad demand for the company's new offerings during the holiday season helped fuel performance and also has the company thinking that its total market opportunity is larger than it initially assumed. This is something that another brand powerhouse, Motley Fool Stock Advisor selection Starbucks (NASDAQ:SBUX), has had to revisit a few times in its history. And like Starbucks, Coach is going to try to take advantage of this opportunity by opening 40 stores this year, instead of the originally targeted 30.

It's particularly impressive that Coach has kept up this performance, given that just about every retailer has begun to increase its offerings in the handbag market in the last couple of years. Some companies, such as Kenneth Cole Productions (NYSE:KCP), are aiming at price points not that far away from where some of Coach's offerings are, while others, such as J. Crew Group (NYSE:JCG) and Gap (NYSE:GPS) and its Banana Republic brand, are mostly going after a lower price point. Coach's more immediate competition still comes from the likes of Louis Vuitton, but Coach's performance is still impressive as many retailers try to nibble at the higher end.

Assuming that Coach can grow at half of these rates for a few more years, I'd say the shares are reasonably priced. I wouldn't want to bet against that.

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Gap is a Motley Fool Stock Advisor and Motley Fool Inside Value selection.

At the time of publication Nathan Parmelee owned shares in Starbucks but had no financial interest in any of the other companies mentioned. The Motley Fool has an ironclad disclosure policy.