Coach Inc. (COH), 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 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) 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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