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North American Woes for Coach

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Shares of the luxury retailer Coach, Inc. (NYSE:COH) are substantially down this morning after revealing a drop of $297.44 million in second quarter profits. Overall sales in the quarter decreased 6 percent from a year ago. Most of Coach’s problems are centered in North America. For example, comparable same store sales in North America were down 14 percent. Coach sited low traffic for the terrible showing in North America. In addition, Coach is also losing market share in luxury handbags to rivals like Michael Kors Holdings Ltd (NYSE:KORS) and kate spade LLC according to Reuters, which may explain the underperformance in North America. However, Coach still has something to be cheerful about. Sales in China grew 25 percent in the quarter.