Investing.com - U.S. luxury goods retailer Coach reported worse-than-expected fiscal second quarter earnings ahead of Wednesday’s opening bell, sending its shares down sharply in pre-market trade.
Coach said second quarter earnings per share came in at USD1.06, missing expectations for earnings of USD1.11 per share. The company’s second quarter revenue totaled USD1.42 billion, below forecasts for revenue of USD1.49 billion.
The company said it experienced weakness in its women bags and accessories business in North America, where sales fell 9% to USD983 million. Comparable store sales in the U.S. declined 13.6% in the period.
"We continued to be disappointed by our performance in North America, which was impacted by substantially lower traffic in our stores," said CEO Victor Luis.
Immediately after the earnings announcement, Coach shares plunged 6.9% in trading prior to the opening bell.
Meanwhile, the outlook for U.S. equity markets was downbeat. The Dow Jones Industrial Average futures indicated a loss of 0.25% at the open, S&P 500 futures pointed to a decline of 0.1%, while Nasdaq 100 futures shed 0.1%.