It’s Coach’s turn to celebrate, one retail analyst is saying.

“[We’ve] been hearing vendor after vendor … say we need to get smaller, but nobody has done it, right?” Nomura Instinet’s Simeon Siegel asked on CNBC’s ‘Power Lunch‘ Tuesday. “Coach just did it.”

The luxury handbag retailer reported better-than-expected profit before the bell Tuesday, fueled largely by the company’s efforts to cut back on discounts and promotions in U.S. stores.

Shares of Coach stock at one point climbed more than 11 percent, driven higher as Wall Street digested the earnings results and contemplated the brand’s future.

Investors feel there are so few places to “hide out in retail,” that signals of strength and measured growth are rewarded meaningfully, Siegel explained. He maintains a buy rating on the stock,…