NEW YORK (AP) — Coach's net income edged down nearly 2 percent in the fiscal first quarter as the company dealt with weaker sales in North America.
The luxury handbag maker's revenue slightly missed analyst expectations and shares slipped in premarket trading on Tuesday.
Coach is facing tough competition in the U.S. as it tries to reinvent itself as a lifestyle brand anchored in accessories to fend off competition from rivals like Michael Kors Holdings Ltd. The decline comes as the company gears up for the critical holiday season, when retailers can make up to 40 percent of annual revenue.
CEO Lew Frankfort said the company is "focused on addressing the competitive handbag and accessories category in North America."
Net income for the three months ended Sept. 28 edged down nearly 2 percent to $217.9 million, or 77 cents per share, from $221.4 million, or 77 cents per share, a year ago. Analysts expected 76 cents per share, according to FactSet.
Revenue fell less than 1 percent to $1.15 billion from $1.16 billion last year. Analysts expected revenue of $1.19 billion.
In North America, revenue in stores open at least one year, a key retail metric, fell 6.8 percent, while total revenue fell 1 percent to $778 million. International revenue edged down to $365 million from $367 million.
Shares fell 13 cents to $54.05 in premarket trading after briefly falling as low as $51.75. It shares are down about 1.7 percent since the start of the year.