Coach shares plummet after trading update

Coach shares

Luxury accessories retailer Coach has seen its shares plunge as it announced that its sales may come below expectations for the year.

Coach said it expects revenues for the fiscal year 2018, which started last month, to rise by 30 per cent to between $5.8 billion (£4.48 billion) and $5.9 billion (£4.56 billion).

This comes just below the median Wall Street estimate of $5.92 billion (£4.57 billion).

READ MORE:  Coach eyes takeover of Jimmy Choo

This comes as the US brand‘s sales for the first quarter dropped from $1.15 billion (£888 million) to $1.13 billion (£872 million), below market expectations of $1.15 billion.

In light of the announcement the retailer‘s shares, which have risen more than a third since the start of the year, dropped by 7.1 per cent.

In May Coach was reported to have been eyeing a takeover of Jimmy Choo, following an acquisition of rival Kate Spade for $2.4 billion (£1.85 billion) earlier in the year.

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