Light Luxury Brand Coach Two Quarter Performance Report

Famous American

Coach (US stock NYSE:COH; Hong Kong stock SEHK:6388) released the second quarter of the 2014/2015 fiscal year (up to December 27, 2014) results

The main points of the report are as follows:

Sales amounted to US $1 billion 220 million, a decrease of 14% over the same period last year.

Reduce 12% by constant exchange rate

Net profit of US $183 million, a decrease of 38.4% over the same period last year.

Diluted earnings per share were $0.66.

Gross profit 840 million dollars, gross profit margin 68.9%, with the first quarter level.

Operating profit of $275 million, operating profit margin of 22.6%, an increase of 5.3 percentage points over the first quarter.

And management costs accounted for 46.3%

The second quarter continued a downward trend in the first quarter.

In the first two quarters of fiscal year 2014/2015, total sales volume was $2 billion 260 million, which was reduced by 12% compared with the two quarter of 2013/2014 and decreased by 11% at the constant exchange rate.

Company

Strategy and acquisition of high-end shoe brand Stuart Weitzman have short-term adverse effects on profits.

Coach's CEO Victor Luis says the second quarter results are in line with the company's expectations.

"The second quarter Coach has successfully introduced the first of the first contemporary luxury concept stores to the world's major markets and demonstrated the design series of Stuart Vevers, the new creative director.

We will continue to push forward the brand pformation plan and adopt new marketing measures at all levels. "

By Region:

Sales in North America amounted to $785 million, even though it increased slightly compared with the first quarter, but decreased by 20% compared with the same period in 2013.

Same store sales fell 22% year-on-year, of which six percentage points fell due to a decrease in online discount activities.

In addition, compared with previous years, sales of department stores in North America increased rapidly.

Overseas sales amounted to US $421 million, down 1% from the same period last year.

The strength of the US dollar has a negative impact on overseas performance. Overseas sales rose by 5% over the same period.

The Chinese market has performed well, and sales have increased by 13% year-on-year according to the fixed exchange rate.

The Japanese market was in a doldrums, and sales fell by 7% over the same period.

The performance of other parts of Asia has increased slightly.

The European region maintained strong momentum, showing a two digit growth.

Management personnel changes

Andre Cohen, Coach China and Asia president and CEO, will be president of North America. Responsibilities include retail management, sales planning, marketing and e-commerce.

David Duplantis, one of the global presidents of Coach, is responsible for digital and consumer experience.

The scope of Dplantis's responsibilities will expand to global marketing and consumer insight.

Francine Della Badia, head of North American retail, is leaving. Stephanie Stahl, who is in charge of global marketing and strategy, will be stepping down next month.