Coach reports 2Q results that show muted holiday sales in North America; shares fall

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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.