Coach Cox Started Preparing To Update Its Store Image From Hongkong Last Week.

(P) American accessories manufacturer Coach Inc. (NYSE:COH) is moving towards lifestyle brands. Since the launch of the pformation plan at the end of January this year, Coach has been preparing to gradually update its store image from Hongkong last week. Although the three quarter Coach Inc. (NYSE:COH) sales in the North American market grew by 1% and its performance was better than expected, the investment sector was not optimistic about the pition from Coach a to a.

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< p > no matter too many or too few shoes ratio is very risky for handbag based Coach Inc. (NYSE:COH).

Coach Inc. (NYSE:COH), however, obviously disagrees with its own way. Coach Resnick (Andrea), a spokeswoman for Andrea Inc., said in an interview with Bloomberg that shoes are an important opportunity for the company.

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< p > according to NPD Group Inc. data from the US market research firm, sales in the US footwear market increased by 3.5% to US $23 billion 500 million in the first 23 billion 500 million months of March this year, while the handbag Market increased by 5% to US $72 billion 400 million, higher than that of footwear products.

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< p > Coach Inc. (NYSE:COH), the company's sales and share of footwear products have never been shown in the earnings report, but according to the Bloomberg report, Coach Cox Chi said that the sales of Coach products will reach 250 million in the fiscal year ending June. Similarly, Coach did not disclose the sales and share of footwear products in the previous fiscal year to Bloomberg.

In the last financial year, sales of other types of scarves, sunglasses, jewellery and other categories of Coach Inc. (NYSE:COH) Cochin's sales accounted for 7% or 333 million 400 thousand dollars.

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< p > the current agent of Coach coco footwear is Jimlar Corp., a company headquartered in New York.

Coach has sold footwear products for about $100, but the group plans to launch more products in August, including $248 "Nala" artificial a target= "_blank" href= "http://www.91se91.com/" > leather "/a" high-heeled shoes and 138 dollar "Dalia" ballet shoes. At the same time, the group also plans to launch specialized shoe salon spaces in 75 stores in the United States. In March, the brand expanded footwear products were launched in 170 stores in North America. According to Coach, the sales of footwear products in the vicinity of the company increased from 3% to 12%.

According to Coach Inc. (NYSE:COH), Chi Chi said that in the next few quarters, Coach also plans to push footwear products to department stores and launch men's shoes, while the Coach Cox factory store also plans to sell footwear products.

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The footwear products launched by P will also erode the gross profit margin of Coach Inc. (NYSE:COH). In the last fiscal year, the gross margin of Coach Inc. (NYSE:COH) was 71.8%, higher than that of Ralph Lauren Corp. (NYSE:RL) Ralph Loren 59.8%, and also 59.9% higher than that of Ralph.

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The stock price of < p > Coach Inc. (NYSE:COH) has risen by about 4.9% this year, far behind the 20% of the S & P 500, which is lower than that of Michael Kors Holdings Limited (NYSE:KORS) 25%.

According to Bloomberg data, about 55% of analysts recommend buying Coach Inc. (NYSE:COH) Cox shares, while Michael Kors Holdings Limited (NYSE:KORS) shares offer up to 84%.

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< p > there are also a few of them who are optimistic about Coach products. Mortimer Singer, President of Marvin Traub Associates, New York retail consultancy, said that Coach has strong brands, and shoes are a popular category, which will help sales of Coach products.

However, Faye Landes, analyst at Cowen & Co., said that sales may rise rapidly in the short term through advertising effect. Brian Pitera, founder of Chicago consulting company A.T. Kearney, shares the same view with the analyst Faye Landes. He thinks that the shoes of the company are very "Shanzhai", and some have already been discounted to $69 a pair.

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< p > last month, on the 24 and the three quarter, when the earnings report was released, Coach Inc. (NYSE:COH), chairman of the board of directors and chief executive officer Lew Frankfort, said that the company has made satisfactory progress towards the pformation of lifestyle brands. The footwear products launched by the company in March were accepted by consumers in 170 Direct stores and 60 international direct stores in North America.

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< p > in the three quarter ended March 20, 2013, sales increased by 7% to 1 billion 187 million 578 thousand dollars in the three quarter of March 20, 2013. Net profit was 238 million 932 thousand dollars, or earnings per share were 0.84 US dollars, up 6% and 10% respectively over the same period last year's net profit of 225 million 2 thousand US dollars or earnings per share of 0.77 dollars.

Revenue grew 1% in the same store in North America and better than expected. Coach Inc. (NYSE: COH, SEHK: 6388) shares rose 9% in pre trading.

The company also announced that it was prepared to vote through the board of directors to raise its annual dividend to $1.35 per share, an increase of 13% over the previous $1.20 share.

Operating profit rose 3% to 348 million 493 thousand US dollars, compared with 337 million 492 thousand US dollars in the same period last year, with a profit margin of 29.3%, a decrease of 110 basis points compared with the same period last year, and gross profit increased 8% to 880 million 188 thousand US dollars, a 818 million 67 thousand US dollar in the same period last year, and a gross margin of 35 basis points to 74.1%.

In the three quarter, sales in the North American market increased by 7% to $792 million, compared with $738 million in the same period last year, while sales in the North American market increased by 8%, while sales in the same market grew 1%. International sales increased by 6% to 382 million dollars, compared with 359 million dollars in the same period last year, and increased by 14% at fixed exchange rates. China's market remained strong, sales growth was 40%, double sales growth in the same store, and international wholesale sales declined.

As of the three quarter of March 20, 2013, Coach added a new retail store in the North American market, closing 5 retail stores, and adding two men's factory stores, which led to the total retail store of Coach from 352 to 191 from the factory store to 100th in the Chinese market. The total number of stores in China reached 118 in the three quarter, and two stores in the Japanese market, making the total number of stores in the Japanese market to 191, with a total of 7 stores in the Singapore market, and between Taiwan and Malaysia, respectively.

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