Upscale leather-goods maker and retailer Coach on Wednesday reported holiday quarter revenue below Wall Street forecasts as a tough economy and stiff competition in the women's handbags segment hurt sales in North America.
Its shares tumbled 11.5 percent to $53.70 in pre-market trading.
Overall, revenue in Coach's fiscal second quarter, which ended Dec. 29, rose 3.8 percent to $1.5 billion, missing analyst projections for net sales of $1.6 billion, according to Thomson Reuters I/B/E/S.
Sales at stores open at least a year in North America, still its biggest market by far, fell 2 percent during the quarter. The company also struggled in Japan, its No. 2 market, where sales fell two percent, excluding the impact of a weaker yen.
"We were disappointed by our performance in North America, where the holiday season proved challenging," Chief Executive Lew Frankfort said in a statement.