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    Kate Spade Is No Longer Losing Money.

    2015/8/9 20:24:00 6

    Kate SpadeAchievementsDeveloping New Products

    The US luxury luxury brand Kate Spade announced its second quarter earnings in August 4th, with a 5.7% rise in overall revenue, and 10% in the same store, including e-commerce. Net profit reached US $8 million 500 thousand (about 52 million 781 thousand yuan), compared with 4 million 400 thousand yuan last year (about 27 million 322 thousand yuan).

    Although retail sales still have a certain distance from analysts' expectations, they still outperform other brands that are located in light luxury brands. Investors therefore push Kate Spade's share price up 3.8 percentage points on that day.

    In February this year, the company announced the 19 home of Kate Spade Saturday. store And the men's wear line Jack Spade's 12 stores will be shut down one after another to ensure the competitiveness of the core brand Kate Spade New York.

    Another important aspect of its transformation is to reduce discounts. Kate Spade even decided to withdraw from the highly popular "friends and family" in the United States, while reducing the discount strength of physical stores. CEO Craig Leavitt of the company said: "the volume of sales at full price is increasing every quarter."

    After the handbag Market became silent, Kate Spade's product strategy was adjusted, and authorized Global Brands Group was responsible for producing soft accessories such as silk scarves and belts. On the other hand, Kate Spade is constantly developing new product lines: swimsuits, children's wear, and upcoming sports series and pajamas coming out in 2016.

    Craig Leavitt has said that it will extend the brand tentacles to fragrances, jewelry, watches and sunglasses based on Ralph Lauren, extending the product to every aspect of the consumer's daily life.

    In an interview with Reuters, analysts said that Kate Spade's inventory flow and new speed were very fast, and it was not easy for consumers to produce "brand aesthetic fatigue".

    Kate Spade expects sales growth in the same store to reach 9%-11% in 2015, and digital marketing will be an important driving force. Craig Leavitt was announced. Transformation At the time of setting the annual earnings forecast of US $4 billion (about 24 billion 838 million yuan), it will take some time to reach the net income of US $281 million (about 1 billion 745 million yuan) in the second quarter of Kate Spade.

    But in fact, Kate Spade Did not give up the handbag, the cash cow. According to the "women's Wear Daily" report, in the latest Kate Spade partner list, there is also the name of New York chain baking house Magnolia Bakery, but they are not launching bread, but their main business - bag. In October this year, consumers will see tea cups, cake boxes, handbags, banana pudding satchel bags, illustrations, handbags and recipes. "The key goal of increasing profits is through cooperation channels (pulling the authorized revenue of the company"). Kate Spade CEO Craig Leavitt said in a conference call.


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