Coach Inc. (COH:US), the largest U.S. luxury handbag maker, reported fiscal second-quarter profit that trailed analysts estimates after mall visits dropped during the holiday season and other chains promoted goods.
Net income in the three months ended Dec. 28 dropped to $297.4 million, or $1.06 a share, from $352.8 million, or $1.23, a year earlier, New York-based Coach said today in a statement. The average of 30 analysts’ estimates (COH:US) compiled by Bloomberg was $1.11.
Sales at North American stores open at least a year sank 14 percent as consumers curtailed mall visits and gravitated to deals at more promotional chains like Macy’s Inc. and brands like Michael Kors Holdings Ltd. (KORS:US) Coach itself had warned in November that its customers planned to spend 4 percent less overall during the important year-end season.
Analysts surveyed by Retail Metrics Inc. estimated on average a 6.8 percent decline for North American comparable sales at Coach.
Coach fell 7.7 percent to $48.50 at 7:03 a.m. in early trading. The shares advanced 1.1 percent last year, compared with a 30 percent jump for the Standard & Poor’s 500 Index.
Revenue fell 5.6 percent to $1.42 billion, trailing the $1.48 billion average estimate.
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