Poor holiday season for Coach
09/01/2009
Luxury leathergoods brand Coach has lowered its profit estimates for the second quarter of its trading year after disappointing sales over the holiday period.
Sales in the quarter that ended on December 27 fell by 2% to $960 million. The company had forecast second-quarter sales would rise to about $1.05 billion.
Same-store sales in North America fell for the first time since 2002, with a drop of 13%.
Credit Suisse analyst Paul Lejuez commented: "With the holiday season over, in this environment, we question what will drive consumers to shop at the mall. While this is an issue facing most mall-based retailers, we view Coach as particularly at risk because its products are higher ticket and more discretionary."
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