This story has been updated from 8:15 am EST with analyst quote and updated stock price.
NEW YORK (TheStreet) - Coach (COH) shares were plummeting roughly 7% after the handbag and accessories maker missed analysts' expectations on both its top and bottom lines for the December-ended quarter.
Coach reported net income of $297.4 million for its second fiscal quarter, down 15.6% from the year-earlier period. Earnings per share of $1.06 missed analysts' estimates of $1.11 a share, according to Thomson Reuters.
Total net sales, which include domestic and international business, fell 5.6% to $1.42 billion. Analysts expected sales of $1.483 billion. On a constant currency basis, sales declined 3% for the quarter, Coach said.
Shares were down 7.2% to $48.78 at last check.
Coach CEO Victor Luis blamed disappointing holiday sales in the U.S. for the miss.
Comparable-store sales for its U.S. stores were down 13.6% for the quarter. Coach's total North American sales declined 9% to $983 million, with direct sales down 8% for the quarter.
"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. We continued to be disappointed by our performance in North America, which was impacted by substantially lower traffic in our stores and by our decision to limit access to our e-factory flash sales site," Luis said in a statement.
It doesn't help that Michael Kors (KORS), Coach's biggest competitor, continues to win share in the U.S. Michael Kors is expected to report earnings on Feb. 4. Analysts, according to Yahoo! Finance, expect the company to report earnings of 86 cents a share for the December-ended quarter, up 34% from last year.