New York -- Coach Inc. third-quarter net income dropped 20% to $190.7 million, from $238.9 million a year earlier, amid increased competition from Michael Kors and others.
Revenue for the quarter ended March 29 fell 7.4% to $1.1 billion, compared to analysts’ $1.13 billion estimate. Same-store sales in North America fell 21%. Sales will continue to fall through the rest of the year, the company said.
“Our business in North America remained challenging in the period, exacerbated by the weather and shift of the Easter holiday. We experienced sharply lower traffic levels in our stores while our internet results were impacted by our strategic decisions to eliminate third party events, as well as limit the access and invitations to our factory flash site,” Victor Luis, Coach CEO, said in a statement.
Coach fared much better outside North America. International sales rose 14% to $441 million, excluding currency impacts. Factoring in foreign-exchange rates, international sales grew 20%.