Coach shares plunge on tough holiday quarter

NEW YORK, NY - FEBRUARY 03: A woman walks by a Coach store at a mall on February 3, 2011 in New York City. According to new data released today, sales at the nation
Spencer Platt

NEW YORK Shares of Coach Inc. (COA) plunged in mid-morning trading after the luxury handbag seller said a challenging economy and heavy price-cutting by competitors weighed on its fiscal second-quarter results.

The muted holiday results offer more evidence that the shopping season was tough as shoppers grappled with growing economic uncertainty.

The U.S.-based company says its net income was $352.7 million, or $1.23 per share, in the quarter ended Dec. 29. That compares with $347.5 million, or $1.18 per share, a year ago.

Net sales rose 4 percent to $1.50 billion.

The results were short of expectations for earnings of $1.28 per share on revenue of $1.6 billion.

Shares of Coach were down nearly 9 percent to $51.94 at 11 a.m. ET on Wednesday.