NEW YORK — Shares of Coach Inc. plunged 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 Christmas-shopping season was tough as shoppers grappled with the economic uncertainty of the European recession and the U.S. “fiscal cliff” federal-budget negotiations.
The quarter is also evidence of growing competition from rivals such as Michael Kors, whose trendy designs are attracting loyal followers.
The New York-based company said its net income was $352.7 million, or $1.23 per share, in the quarter that 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 $9.93, or 16 percent, to $50.75.
Business, Pages 28 on 01/24/2013