Why Coach (NYSE: COH) Stock Dropped 8% Today

Coach Inc. (NYSE: COH) stock plunged as low as 8.13% today (Wednesday) after its Q2 earnings release delivered this disappointing data...

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Analysts expected to see earnings around $1.11 per share and revenue of $1.48 billion. What they got instead was EPS at $1.06 and a revenue of $1.42 billion. The Q2 earnings represent a 16% drop from a year ago.

Compared to a year ago, Coach's Q2 earnings are down to $297 million versus $353 million, and $1.06 per share versus $1.23 per share.

Coach stock had been falling over the past couple weeks. Today it set a three-month low when it opened at $48.74 per share (after closing at $52.55 on Tuesday), putting Coach on track to continue its 12-month slump of approximately 13%.

Coach's woes stem from its earnings in North America, which dropped 9%, putting sales at $983 million; the plunge offset gains in international sales, which rose 2% to $425 million.

North American same-store sales decreased 13.6% last quarter for its third-straight decelerating quarter. According to StreetAccount, it was also Coach's first double-digit decline since the 2008 economic collapse.

"During the holiday quarter, total sales fell slightly in constant currency as weakness in our North American women's bag and accessories business offset strong growth in Men's, footwear, and robust results in emerging Asian markets and Europe," Chief Executive Officer Victor Luis said in a statement.

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The luxury retailer recently transitioned its top brass - Luis took the reins in July 2013, along with departures by Coach's North American group president and chief operating officer.

Coach said it repurchased about 3.3 million shares of common stock at an average cost of $52.99 over the course of the quarter, which cost the company about $175 million.

"We remain confident in our brand vision, our leadership team and our ability to execute the strategy underway," Luis concluded in his statement.

Coach will definitely need to make adjustments in North America to right the ship.

Coach (COH) stock trimmed its loss to about a 7% fall to $48.90 with two hours left in trading.

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