NEW YORK (AP) — Shares of Coach Inc. fell Wednesday after the company reported a lower quarterly profit, citing weakness in its North American women's bags and accessories unit.
The New York-based luxury goods maker, which is facing tough competition from rivals like Michael Kors Holdings, said it saw "substantially lower" traffic in its North American stores. CEO Victor Luis said the company "continued to be disappointed by our performance" in the region.
At North American stores open at least a year, sales declined 13.6 percent. The metric is a key indicator because it strips out the volatility of newly opened and closed locations.
Coach noted that it's seeing stronger results in emerging Asian and European markets, with international sales up 11 percent when removing the impact of foreign currency exchange rates.
For the period that ended Dec. 28, Coach earned $297.4 million, or $1.06 per share. That compares with $352.8 million, or $1.23 per share, a year ago.
Analysts expected $1.11 per share.
Net sales fell 6 percent to $1.42 billion, short of the $1.47 billion Wall Street expected, according to FactSet. When stripping out the impact of exchange rates, it said sales fell 3 percent.
Coach's stock fell nearly 8 percent to $48.55 in premarket trading.
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Original headline: Coach reports lower profit, shares fall
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