Coach Three Quarter Profits Plunged, North American Consumption Hit

The group's chief executive, Victor Luis, decided to reduce the product discount and discount store strategy, so that Coach, which showed signs of recovery in the last quarter, fell back into the abyss and became even more difficult to "redeem".

It is reported that reducing the discount of e-commerce channels to the North American market.

The negative impact is as high as 11%.

At the same time, as a result of reducing discounts and closing 54 stores, Coach in the three quarter plunged 24% to 493 million dollars in North America, compared with $648 million in the same period in 2014.

7 consecutive quarters

The rapid shrinkage of sales in the same store has led the industry to see the prospect of Coach.

Balun weekly website commented that Coach brand value will be further depreciated due to a small market share.

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More worrying is that the company said the current quarter will be similar to the three quarter sales fell.

The market analysts said that Coach still has a long way to go to restore its brand prestige.

The brand has been reshaping the store image and has repeatedly tried to cooperate with the new designers in order to reverse the sales decline and win back the market share of competitors, such as Michael Kors, but so far, it has obviously not been effective.

It is worth noting that the Chinese market of the company has also begun to slow down considerably.

Although light luxury has become more and more important in newly opened shopping centers in China, Coach has not been as popular as before.

"It faces Kate Spade, Michael Kors, MCM, Tory Burch and other similar brand competition."

Durbin, the general manager of renting service, RET, a commercial real estate service provider, told reporters.

Data showed that China's revenue grew by 25% in the 2014 fiscal year ending June 28, 2014, but the growth in the first three quarters of this fiscal year was 10%, 13% and 10% respectively.