The “disappointing” results were pulled down by the company’s women’s handbag business in North America, according to Frankfort, who said comparable-store sales in North America fell 2 percent. This marked only the third time in 11 years that Coach registered a negative comp. It registered negative comps in the second quarter of 2002, following 9/11, and in January 2009, following the financial collapse. The flagging comps were offset by strength in Coach’s international business, led by double-digit same-store sales growth in China.
Although the company acknowledged new competitors, Coach said macroeconomic factors, such as the impact of Hurricane Sandy and uncertainty surrounding the fiscal cliff, played a role in the weaker results. The handbag maker also cited its decision to refrain from promotions during holiday even as competitors increased markdowns.