NEW YORK (AP) — Coach said Tuesday that its profit fell for the first three months of the year as sales in North America tumbled amid tough competition.
The luxury goods maker said sales fell 21 percent at North American locations open at least a year. It said weakness in its women's bags and accessories continued to offset growth in men's footwear and gains in Asia and Europe. Coach has been struggling to keep its brand relevant domestically as it faces intensifying competition from rivals such as Michael Kors Holdings.
The New York-based company noted that the bad weather complicated already-challenging conditions. CEO Victor Luis said in a statement that despite the disappointing results, "we remain confident in our brand vision."
International sales rose 14 percent to $441 million for its fiscal third quarter, with strong growth in China.
For the three months ended March 29, the company said it earned $190.7 million, or 68 cents per share. Analysts expected 61 cents per share. A year ago, the company earned $238.9 million, or 84 cents per share.
Revenue fell to $1.1 billion, short of the $1.13 billion Wall Street expected, according to FactSet.
Shares of Coach Inc. fell nearly 8 percent to $46.50 in premarket trading.