Coach (NYSE:COH) plunged in pre-market trading on news of a "challenging" holiday quarter. The company is seeing a constricted consumer, waning appetite for aspirational purchases, and tough competition. It's the same environment that caused Crocs (NASDAQ:CROX) to sell off nearly 10% just the other day.  However, all may not be lost. Today's sell-off seems extreme given the specifics of the earnings, and digging deeper, there are still reasons to be optimistic on Coach today.

Editor's note: At the 30-second mark, Austin meant to say "Crocs," not "Coach." The Fool regrets the error. 

Austin Smith owns shares of Coach. The Motley Fool recommends Coach. The Motley Fool owns shares of Coach and Tiffany & Co. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.