Hong Kong And Macao Markets Become COACH'S Drag

COACH's life has not been easy recently. Earlier, COACH was closed in flagship store in central Hongkong, becoming the first brand to evacuate the core retail business in Hongkong market, which aroused great concern in the industry. At the same time, COACH's earnings in the 2015 fiscal year ended June 27th showed that the net income of the brand was US $402 million, a decrease of 48.5% over the previous year's US $781 million. The growth rate of sales in fiscal year 2015 was 9%, the first digit growth in China's fiscal year sales.

COACH has come out with various changes in recent days. COACH Group expects COACH brand to be calculated at a constant exchange rate and based on 52 weeks, and is expected to gain an increase in sales volume in the 2016 fiscal year.

COACH group released the first quarter of fiscal year 2016 ending September 26, 2015. achievement 。 Among them, COACH brand sales decreased by 9% in the first quarter compared with the same period last year. By region, sales volume in North America is still declining, but the decline is narrowing. Sales growth in China has continued to decline due to the impact of Hong Kong and Macao.

The COACH net sales decreased by 9% to 943 million US dollars in the first quarter compared with the same period last year. According to the constant sales rate, the total sales in the first quarter decreased by 5% compared with the same period last year, narrowing compared with the same period last year. By contrast, sales in the North American market fell by 16% to $691 million in the fourth quarter of last fiscal year.

Financial reports show that COACH Brand sales in North America dropped 11% to $561 million from $634 million last year, down 10% from a year earlier. Same store sales fell 9.5% year-on-year, including sales of the same store decreased by about 1.5% due to the reduction of official online sale activities.

However, COACH brand International sales It has risen. According to the report, international sales of brands decreased by 3% to 369 million US dollars from 381 million US dollars in the same period last year. According to constant exchange rate, international sales increased by 6% over the same period last year. In terms of dollar terms, sales in China increased by 2% over the same period last year, up 3% from a year earlier. Among them, sales in mainland China were double-digit growth, while same store sales also achieved positive growth, but some business growth was offset by continued weak sales in Hongkong and Macao.