Coach Inc. (NYSE: COH) reported second-quarter fiscal 2013 results before markets opened this morning. The luxury goods firm posted diluted quarterly earnings per share (EPS) of $1.23 on revenues of $1.5 billion. In the same period a year ago, Coach reported EPS of $1.18 on revenues of $1.45 billion. Today’s results also compare to the consensus estimates for EPS of $1.28 on revenues of $1.6 billion.

The company’s CEO said:

[W]e were disappointed by our performance in North America, where the holiday season proved challenging. Most broadly, the consumer was impacted by a muted macroeconomic environment, while in the Women’s handbag category competition intensified and promotional activity increased. Importantly, we maintained our pricing strategies despite the retail climate, protecting our brand proposition.

Not surprisingly, the company is turning its attention to growing its international brand, aiming to become “a global lifestyle brand, anchored in accessories.” Part of the reason for that is the intense competition from Michael Kors Holdings Ltd. (NYSE: KORS). North American sales grew by just 1%, while international sales rose 12%, led by sales in China that jumped 40%.

The gross margin in the holiday quarter came in at 72.2%, essential flat with the same period a year ago.

Coach did not offer any guidance. The consensus estimates for the third quarter call for EPS of $0.86 on revenues of $1.24 billion. For the full fiscal year, EPS is estimated at $3.87 on revenues of $5.3 billion.

Shares are down about 14% in premarket trading this morning, at $52.20 in a 52-week range of $48.24 to $79.70. Thomson Reuters had a consensus analyst price target of around $68.20 before today’s results were announced.

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