Shares of Coach (NYSE:COH) fell more than 9% in early trade on Tuesday after the fashion icon announced the departure of two key executives and reported disappointing fourth-quarter U.S. handbag sales.
The New York-based handbag and accessories designer reported net income of $221 million, or 78 cents a share, compared with $251 million, or 86 cents, in the year-earlier period.
Excluding special items like restructuring charges, Coach said it earned 89 cents, matching average analyst estimates in a Thomson Reuters poll.
Revenue for the three months ended June 29 grew 6% to $1.22 billion from $1.16 billion a year ago, narrowly missing the Street’s view of $1.24 billion as handbag sales disappointed.
“While we maintained our outstanding profitability levels, we were not satisfied with our performance in the women’s handbag and accessories category in North America,” Coach CEO Lew Frankfort said in a statement.
Shares of Coach fell more than 9% to $52.49 in recent trade.
Separately on Tuesday, Coach said Mike Tucci, president of its North American group and chief operating officer Jerry Stritzke will step down at the end of August.
No replacement for COO was named, however, Coach said Francine Della Badia, currently executive vice president responsible for all North America retail and global men’s and factory merchandising will succeed Tucci as president of North America Retail.
Luis said Coach’s long-term goals “remain unchanged,” and that the new management team will focus on improving results in North America.