Luxury Brand Coach Global Performance Decline

< p style= "text-align: center" > < img border= "0" align= "center" alt= "" src= "" /uploadimages/201310/24/20131024020045_sj.JPG "/" < > > "

The latest earnings report released last night by P style= "text-align: left", the "light luxury" brand of New York, USA, showed that sales in the first quarter of fiscal year 2014 as of September 28, 2013 were $1 billion 150 million, down 1% compared with the same period last year. Net profit decreased 2% to 827 million US dollars from 845 million US dollars in the same period last year, and business income also decreased by 3% compared to the same period last year.

It is worth noting that in the fall of the market, the performance of the company in the Chinese market continued its strong performance in the last quarter, a year-on-year growth of up to 35%, and its direct sales in the same store also increased to two digit growth.

< /p >

In the global market, P's performance in North America and Japan is particularly bad.

Due to the continuous exertion of Michael Kors, the world's largest North American market has been slowing down recently.

In the quarter, sales in North America decreased by 1% to $778 million from $784 million in the same period last year, while same store sales also dropped 6.8% compared with the same period last year. Shipments to department stores also declined slightly.

Japan's market plus exchange rate dropped by 22%.

< /p >

Lu Xiaoming, who has rich experience in the luxury industry and now is the founder and President of the organic home, said in an interview: "the product of the entry-level market positioning of luxury products will continue to grow in the future, and the products that are suitable for the middle class will continue to develop, and the speed of growth will probably be like the growth of luxury goods in the previous two years, because these products are the real needs of Chinese consumers." P

< /p >

In the last fiscal year, the sales volume of the company in the Chinese market increased by 40% compared with the previous year, while other light luxury brands such as Italy leather Furla and American leather goods and < a target= "_blank" href= "http://www.91se91.com/" > dress > /a > brand Kate Spade also have a good performance, and are actively expanding the business in China.

< /p >

< p > UBS Securities analysis reported that mass consumption of luxury goods is a long-term trend in the Chinese market.

< /p >

In order to further tap the emerging market space and cope with the weakness of the North American market, P has been actively promoting brand pformation since last year.

Not long ago, the brand officially launched the "a target=" _blank "href=" http://www.91se91.com/ "shoes" /a product line, and its brand pformation plan was to change from the original focus on leather brand to fashion lifestyle brand including shoes, clothing and other product lines.

< /p >

Lew Frankfort, chairman and chief executive officer of P, said that the company has achieved a good growth in the emerging market, men's business and the development of fashion lifestyle. This is also a brand pformation measure aimed at the competitive environment of handbags and accessories business in North America.

< /p >

In the last fiscal year, P's new business grew by nearly 50%, while footwear sales reached $250 million, while sales of scarves, sunglasses, jewellery and other categories accounted for 7%.

< /p >