Coach2016 Fiscal Year Net Growth Of 14 Stores In China Has Seen Reforms

American light luxury originator COACH After a continuous decline in performance, it finally decided to spanform. Over the past year, judging from the latest performance, the reform of COACH has been successful.

According to the financial report released on Tuesday, by the year July 2, 2016, COACH's fourth quarter sales increased by 15% to $1 billion 150 million at a constant exchange rate. "We achieved strong results in the fourth quarter." CEO Victor Luis said.

Once led the North American luxury. Handbag And accessories market COACH, in recent years, the local market share is being Michael Kors, Kate Spade and Tory Burch, and so on several big extravagant extravagance. brand The squeeze of competitors. In 2014, COACH suffered negative growth for the first time in the past ten years. In the same year, the company also announced the closure of 70 stores in North America that were outdated or poorly performing. At that time, the industry was playing a bad role in COACH, and the analyst of Wall Street would decline due to the blind expansion of the brand.

COACH had to respond. At the investor conference in June 2015, the company announced a package of spanformation plans: spanforming brand positioning from "accessible luxury" to "modern luxury" lifestyle brand; developing the original handbags and accessories, and developing more clothing, shoes and other products to enhance the brand's fashion; and hoping to win more consumers through the spanformation of products, shops and marketing.

Christian Buss, an analyst at Credit Suisse Group, pointed out earlier that the biggest problem for Coach is that it relies too much on handbag business. Handbag business occupies 80% of total sales, but the product category is in recession.

COACH seems to be aware of this problem. The company's internal stakeholders told the first financial reporter that today COACH has added more products from head to toe in stores, such as adding more lifestyle products (shoes and clothes) on the basis of bag accessories, so that consumers can have more choices.

In addition to expanding the product line, the company is also looking forward to increasing brand fashion to win young consumers. The director said that in order to attract a wider range of customer groups, COACH launched diversified products for different customer groups, such as the main product line Swagger, with different sizes, colors and innovative elements to choose from. It can meet different needs of consumers at different ages for fashion styles and functions.

According to an analysis report by Corinna Freedman, an analyst at BB&T, the negative trend of COACH is no longer worsening. The loss of market share has hit bottom and the business situation is improving.

Victor Luis said that COACH has resumed brand growth in the past year's target period. The company's sales in fiscal year 2016 amounted to $4 billion 490 million, a 9% rise at a constant exchange rate. "The most important thing is that we can advance our business growth and achieve cost effectiveness in order to achieve a profit recovery as expected."

It is reported that as of the end of fiscal year 2016 (by July 2, 2016), COACH has 185 stores in Greater China (including the mainland, Hongkong and Macao), with 165 stores in mainland China. According to COACH, in the 2016 fiscal year, COACH increased 14 stores in the Greater China region (including 24 new stores and 10 old stores).