Reuters

(Reuters)

Handbag Maker Coach's Sales Drop 15.5%

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Handbag and accessories maker Coach Inc's quarterly sales fell short of estimates due to continued weak demand for its products in North America, its biggest market.

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The Poppy handbag maker's shares were down 8.2 percent at $38.85 in premarket trading on Tuesday.

Sales in North America fell 24 percent to $493 million in the third quarter ended March 28, marking the seventh straight quarter of decline.

Same-store sales in the region fell 23 percent. Analysts polled by Consensus Metrix had forecast a decline of 21.5 percent.

Coach, which was founded in a Manhattan loft in 1941, has been focusing on Asia and Europe as it loses customers in North America to newer entrants Michael Kors Holdings Ltd and Kate Spade & Co.

But a weaker yen clipped sales in Japan and China sales grew at their slowest pace in eight quarters.

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Net sales fell 15.5 percent to $929.3 million. Excluding the impact of foreign currency, sales rose 3 percent.

Coach's net income more than halved to $88.1 million, or 32 cents per share. Excluding items, the company earned 36 cents per share.

Analysts on average had expected earnings of 35 cents per share and revenue of $949.9 million, according to Thomson Reuters I/B/E/S. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty) ((yashaswini.swamynathan@thomsonreuters.com; within U.S. +1 646 223 8780,outside U.S. +91 80 6749 2405; Reuters Messaging:yashaswini.swamynathan.thomsonreuters.com@reuters.net) )