NEW YORK – Shares of Coach Inc. are plunging in premarket trading Wednesday after the luxury handbag seller said a challenging economy and heavy price-cutting by competitors weighed on its fiscal second-quarter results.
The muted holiday results offer more evidence that the shopping season was tough as shoppers grappled with growing economic uncertainty.
The New York-based company says its net income was $352.7 million, or $1.23 per share, in the quarter ended Dec. 29. That compares with $347.5 million, or $1.18 per share, a year ago.
Net sales rose 4 percent to $1.50 billion.
The results were short of expectations for earnings of $1.28 per share on revenue of $1.6 billion.
Shares of Coach fell nearly 17 percent to $50.55 in premarket trading.