US-based leathergoods and footwear manufacturer Coach has posted a sharp decline in sales for the second quarter ended June 30.

Sales for the period rose 1.7% year-on-year, but fell well below expectations, prompting a 19% drop in share prices. This was the brand’s worst single-day drop since just after September 11.

"An increasingly promotional environment in North America led to slower growth," CEO Lew Frankfort told analysts, noting that shoppers’ appetite for discount vouchers was "insatiable".

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