* First-quarter revenue falls 1 pct to $1.15 bln vs est
* North America comparable store sales fall 6.8 pct
* Expects N. America same-store sales to fall high single
digits in 2014
* Continues to lose market share to Michael Kors, kate spade
* Shares fall as much as 9 pct
(Adds video link)
By Maria Ajit Thomas
Oct 22 Coach Inc, known for its Poppy
handbags, posted a steep fall in sales in North America, its
largest market, and forecast further declines through the rest
of its financial year as it loses market share to rivals such as
Coach shares fell as much as 9 percent after it reported a
6.8 percent fall in North America same-store sales in the three
months to Sept. 28.
The company warned North American same-store sales would be
down by "high single digits" for the rest of the financial year
which ends in June 2014, Chief Financial Officer Jane Nielsen
said on a post-earnings conference call.
Coach has been facing stiff competition in the handbags
business from Michael Kors Holdings Ltd, Fifth &
Pacific Cos Inc's kate spade and Tory Burch whose trendy
offerings resonate more with younger customers.
"I think where Coach has really struggled is the 20-35
crowd. They've left Coach and gone to Michael Kors and kate
spade," said Edward Jones analyst Brian Yarbrough.
Coach retaliated by selling more clothing and footwear,
which have lower margins than the handbag business.
However, Yarbrough said the strategy would not be enough to
offset the declines in the handbag business.
Coach's total sales in 2014 are expected to be flat or rise
in the low single digits on a constant currency basis, CFO
Nielsen said on the conference call.
Total first-quarter sales slipped 1 percent to $1.15
billion, falling shy of analysts' estimates. Sales in North
America fell 1 percent and accounted for about 68 percent of
Net income slipped 1.6 percent to $217.9 million, or 77
cents per share, missing analysts' estimates.
(Reporting by Maria Ajit Thomas in Bangalore and Phil Wahba in
New York; Editing by Savio D'Souza)