Coach's North American Sales Are Tumbling

Coach's profit fell 1.6% in the most recent quarter as the luxury U.S. handbag maker faces stiff competition from Michael Kors, Kate Spade and Tory Burch.

"We were disappointed by our overall performance in womens handbags and accessories," Coach Chairman and CEO Lewis Frankfort said in an earnings call Tuesday.

Net income dropped to $217.9 million - or 77 cents per share - down from $221.4 million a year earlier, in the company's fiscal first quarter that ended Sept. 28, Coach said Tuesday.

A major driver behind the New York-based company's falling profit was a 6.8% decline in sales at stores open at least a year in North America.

International sales also decreased slightly - about 0.5% - to $365 million, the company said.