Coach: Sales Figures In Mainland China

"Happy", "thank you", which is probably the two most frequently used words in Coach CEO Victor Luis today.

Before the market opened in October 27th, the US listed company released its first quarter report: in the three months ended September 26th, the company's net sales amounted to US $1 billion 30 million (about 6 billion 540 million yuan), down 1% compared to the same period last year, which is higher than the 1 billion US dollars in the fourth quarter of last fiscal year.

According to the constant exchange rate, the company's first quarter revenue increased by 3% over the same period last year.

Among them, Coach contributed $943 million (about 5 billion 990 million yuan), down 9% from the same period last year.

Although it is still in a declining state of revenue, compared with the performance of the first four quarters, it will be found that the performance improvement of Coach has been very obvious.

In June 2014, Coach formally announced the pformation plan, and in August last year, we extracted the creative director Stuart Vevers from the Spanish luxury leather brand Loewe.

The designer who shoulders the responsibility of image reform is doing quite well.

"New products designed by Stuart Vevers, especially Ace and Nomad packages launched in retail stores, and Blake handbags launched in special shops, are welcomed by customers all over the world."

Victor Luis said.

All this is not confined to bags.

The brand of nearly 75th anniversary of the brand in New York Fashion Week held its first real fashion show in September. It also marked the entry of Coach into the women's clothing industry.

Looking at Vevers's 2016 spring summer series, you can hardly associate with the impression of "aunt brand".

Financial data show that the total sales volume of Coach in North America dropped 10%, to 5.61 trillion yuan (about 3 billion 560 million yuan), much better than the 20% decline in the fourth quarter.

Same store sales fell by 9.5% over the same period last year, with the decline in official website sales activities leading to a decrease of 1.5 percentage points in the same store sales.

CEO Victor Luis explained in a subsequent conference call: "we are further improving the entity store business in North America, and we expect to achieve positive growth in the same store by the end of the year."

Europe's performance continued to be very strong, with double-digit growth in total sales and same store sales.

Due to the impact of the Middle East respiratory syndrome (MERS) bursts leading to the weakness of the tourism retail channel, the sales volume of the international wholesale outlets decreased, while the local market operated by distributors increased.

The net sales to the channel also declined compared with the same period last year.

The latest series of "Coach 1941" will be on shelves next year, and before that, the brand will face the upcoming holiday season.

Victor Luis said: "stepping into the main holiday season, we are confident that we will launch various kinds of gifts and fashionable handbags in various channels.

With this driving force, the same store sales in North America will be improved.

International business, especially in Europe and Japan, will continue to benefit from strong tourists' purchasing power. "

It is expected that sales of Coach will show low unit growth in fiscal year 2016, and the negative impact of exchange rate fluctuations may reduce gross margin by 80-100 basis points.

In addition, Coach predicts that the sales of high-end shoe brand Stuart Weitzman acquired in 2015 will be around $335 million (about 2 billion 130 million yuan) in the new fiscal year, which will help push the company's total sales volume to near high single figures.

The brand, known for its knee length boots, earned $87 million 500 thousand in revenue in the first quarter (about 556 million yuan).