COACH Is Accused Of "Blind Expansion".

In recent years, the environment for the development of luxury goods in China is not very prosperous.

Bain's Research Report on China's luxury goods market in 2015 (hereinafter referred to as the "report") found that in 2015, China's luxury goods market declined about 2%, and the market size dropped to about 113 billion yuan.

At the same time, store sales and passenger volume continued to decline, new brands have also encountered similar situations, many luxury brands have emerged from the shop.

Against this background, however, the company still plans to expand its stores in the Chinese market.

The industry has pointed out that the action or the blind expansion of the company in China.

although

Sales and other indicators are getting warmer, but from the third financial quarter's report, gross profit and net profit index still showed a downward trend.

According to non GAAP and financial reporting basis, the gross margin of the company was 69%, compared with 71.6% in the same period last year.

The operating profit margin was 14.7%, compared with 15.8% in the same period last year.

On the basis of financial reporting, business income was $134 million, compared with $124 million in the same period last year.

The operating profit margin was 13%, compared with 13.3% in the same period last year.

According to the company's earnings report, apart from discounted sales promotion, the company has further consolidated its financial results by reducing its labor costs.

The corresponding labor costs have also declined to varying degrees.

At the same time, the company also put forward the "operational efficiency improvement plan" to enhance organizational efficiency, update the core technology platform and optimize the supply chain network so as to cope with the rapid changes.

Situation, fluctuation of tourism consumption and increasingly fierce competition environment.

The plan to reduce corporate jobs in the global market will generate about 65 million ~8000 million pre tax expenses, which will be reflected in the financial statements from the fourth quarter and are expected to be completed in the end of 2017 fiscal year.

In the earnings report, the group did not disclose the size of the layoffs.

Nevertheless, in the face of many luxury brands in China

After the withdrawal of the cabinets, he did not seem to be affected.

Jan Bozek, President and chief executive officer of the Greater China region, said that in view of the good performance of the mainland market, the company plans to add 10~15 stores in China in fiscal year 2016 and continue to invest in the renovation of its existing stores. It is estimated that the Chinese market will sell for up to 600 million dollars in that year.

In the eyes of industry observers, this is another sign of "blind expansion".

In the interview, the reporter learned that as of March 26, 2016, the company had 161 stores in mainland China, including more than 40 modern luxury retail concept stores.

By the end of fiscal year 2016 (end of June 2016), the company expects to have about 400 new retail outlets around the world. "At the same time, we expect that about 40% of Chinese market stores will be presented to consumers with new and modern luxury concept stores".