Coach Inc, known for its Poppy handbags, posted a smaller-than-expected quarterly revenue as sales slipped in North America, its largest market.
Shares of the company, which also makes footwear and accessories such as scarves and belts, fell 3 percent in premarket trading.
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Coach has struggled with its handbags business in North America due to competition from Michael Kors and Fifth & Pacific Cos Inc's kate spade brand.
The company's sales in North America fell 1 percent to $778 million in the first quarter quarter ended Sept. 28, accounting for about 68 percent of total sales.
Total sales also fell 1 percent to $1.15 billion. Analysts on average had expected sales of $1.19 billion, according to Thomson Reuters I/B/E/S.
Net income slipped to $217.9 million, or 77 cents per share, from $221.4 million, or 77 cents per share, a year earlier.
Analysts had expected a profit of 76 cents per share.
Coach shares were trading at $52.50 before the bell.