Luxury US accessories brand Coach has seen its shares plummet 18.6% after it failed to hit its fourth quarter projections.
Coach reported a 24.2% rise in profit to $251.4m (£160.7m) for the three months to June 30, up from $202.5m (£129.5m) in the same quarter a year earlier.
However, Coach’s net sales for the period came in below analysts’ $1.2bn (£760m) projection at $1.16bn (£740m). Sales were up on last year’s fourth quarter net sales of $1.03bn (£650m).
Like-for-like sales in North America rose 1.7% for the quarter, while sales in Japan, Coach’s second-largest market, increased 16%.
For the full year, net income rose 18% to $1.04bn (£660m), while sales increased 14.5% to $4.76bn (£3.04bn).
Demand at the brand’s factory outlet stores in the fourth quarter in the US is said to have slumped, contributing to the falling share price.
“In North America, an increasingly promotional environment led to lower growth than expected in factory stores,” said Coach chairman and chief executive Lew Frankfort. “As a result, we responded by reinstating our prior practice of in-store couponing in a cross section of factory locations late in the period.”