Luxury handbag maker Coach Inc. said Wednesday better business in North American stores during the holidays helped lift its second-quarter profit by 11 percent. But amid glimmers of luxury market stabilization, investors wanted even better results, and shares tumbled more than 6 percent.
Lew Frankfort, CEO of the New York company, said he expects “healthy sales and earnings growth over the balance of the fiscal year” but did not give specific guidance.
The company has introduced more handbags priced at under $300 to spur sales as luxury retailers feel the effects of the weak economy.
Sales in stores open at least a year — a key measure of retail health — rose 3.2 percent in North America, the first increase in five quarters.