Coach approves $1 bln buyback

(Adds share rise, performance during the year)

LOS ANGELES, Aug 26 (Reuters) - Handbag maker Coach Inc's board authorized a $1 billion stock buyback after completing its previous $ 1 billion authorization, the company said on Monday.

The repurchase would represent more than 10 percent of outstanding shares at the company, and its stock rose about 3 percent to $27.17 in after hours trade. It had dropped nearly 7 percent on the New York Stock Exchange.

Like other retailers and consumer goods makers, the weak U.S. economy has pressured Coach results, and last month it said it was extremely cautious, predicting consumer malaise would continue well into 2009. Shares of the luxury goods company are down 35 percent in the last year. (Reporting by Peter Henderson; Editing by Derek Caney)