Who Would Like To Worry About The Annual Performance Of The Five Big Luxury Companies?

Mulberry from the United Kingdom, Coach, Michael Kors, Tumi of the United States and Kate Spade derived from Fifth & Pacific, which are stripped of other brands, can be said to be the most representative ones in the world.

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They have all released the official annual report of the last financial year, and according to this, "magnificent ambition" has exclusive financial data for the five companies to see which performance is better last year.

The latest annual earnings reports of the five companies are different.

The latest fiscal year of *Coach is from the beginning of July 2014 to the end of June 2015.

The latest fiscal year for *Mulberry and Michael Kors is from the beginning of April 2014 to the end of March 2015.

*Kate Spade the latest fiscal year is from the beginning of January 2014 to the beginning of January 2015.

*Tumi the latest fiscal year is January 2014 to December 2014.

This article unifies 2014 represents the most recent fiscal year, and the 2013 represents the last fiscal year.

The product lines of Mulberry, Coach and Michael Kors are more similar, including handbags, leather accessories, ready-made clothes, footwear and so on.

Kate Spade is developing its product diversity. In addition to traditional handbags, garments and other products, it also works with other companies through brand licensing to launch swimwear, bedding and other new products.

Tumi's product line is different from the other four, with travel related luggage and accessories.

As of October 27, 2015, the highest value of the five companies was Coach, which reached $8 billion 800 million, while Michel Kors ranked second at 7 billion 500 million US dollars.

(the figure below shows the market value of companies compared to October 14th).

In 2013, the market value of Michael Kors exceeded Coach, but the share price declined in the last financial year.

Although sales of Michael Kors have been growing for a long time, the growth rate has slowed down in the past fiscal year, and the fourth quarter has reached the lowest level since the listing.

Stock analysts believe

The expansion of the sales network is too fast, resulting in the reduction of brand value.

"Coupled with the fierce competition in the market, the company's stock has fallen sharply in the past year, which has shrunk by more than half of its market value in 2013.

The five companies are mainly local markets, of which Kate Spade accounts for the highest proportion of local sales.

Coach because North American sales continued to decline, North America accounted for the total sales volume has fallen below 60%.

Although the main market of Tumi is still in the US area, the growth rate of the international market in the past year is much higher than that in the United States.

Coach continued the strategy of reducing the number of stores in North America, down from 332 to 258.

It is also the only company in five companies that has a smaller number of stores.

The Michael Kors and Kate Spade increased the number of stores substantially, showing the desire to expand the market, and also led to sales growth.

It has also implemented the trend of increasing the number of stores since 2010, and has opened 25 new shops, the highest in five years.

Next is the comparison of income, profit, growth and business efficiency:

In the last fiscal year, Coach was not performing well, especially in North America, which was the largest market in the company.

Sales of Michael Kors, however, maintained a steady growth and surpassed Coach in total revenue.

Kate Spade has been strong in the past year, and its sales growth in North America and the international market is over 50%.

In addition, the fourth quarter income tax returns amounted to 8800 million, and the net income of the 2014 financial year increased more than twice.

Note: due to the different calculation methods of gross profit margin by different companies, the net interest rate is often interfered by tax, interest expense and non recurrent items. The best index of horizontal comparison of operating efficiency is "the ratio of profit before tax and depreciation (EBITDA) to total income".

The gross profit margin of Coach remains at a higher level, but the weakness of North America has led to a decline in the percentage of EBITDA's total revenue and net interest rate.

Among them, the net interest rate is 5 company's countdown second, which is better than the loss of Mulberry.

While Michael Kors is strong, EBITDA accounts for the highest percentage of total revenue and net interest rate in five companies.

A large part of Kate Spade's net profit this year comes from the income tax return, which removes the influence of this factor. EBITDA accounts for a low percentage of total revenue and net interest rate.

From the point of view of inventory management, the efficiency of Micheal Kors is the highest, and the inventory turnover time calculated by 365* average inventory / sales cost formula is only 99 days, which is basically the same as last year.

Except for Mulberry, the other three companies have little difference.

Mulberry's inventory turnover reached 225 days, showing weak sales.