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    Reduce Discounts And Enhance Coach Group'S Fourth Quarter Recovery

    2016/8/11 19:25:00 45

    CoachLuxuryBrand

      

    Luxury goods

    Big names are still struggling in the cold winter.

    brand

    Coach

    Full recovery.

    Coach group released the latest report shows that in fiscal year 2016, group sales net sales of $4 billion 490 million, an annual increase of 7%.

    As of July 2, 2016, the net sales in the fourth quarter amounted to $1 billion 150 million, up nearly 15% from the same period last year.

    Analysts believe that Coach is losing the effect of price reduction on brands.

    Thanks to the adjustment of stores and the growth of Stuart Weitzman, the Coach group's fourth quarter business income increased by 200% to $117 million, and gross margin was $783 million, an increase of 14% over the same period last year.

    Net income was $126 million, an increase of 47% over the same period last year.

    By region, the fourth quarter sales in North America increased by 9% to $606 million, while the same store sales in the United States increased by 2%, of which e-commerce contributed about 1%, while sales in the Greater China region increased by 5% over the same period, with sales in mainland China showing double-digit growth. However, some business growth was offset by continued weak sales in Hongkong and Macao.

    Restoring growth is inseparable from the Coach group's pformation strategy.

    Coach recognizes the constant discounts on brand value, and gradually discharges discount stores from North America and reduces discounts to stabilize retail prices.

    The analysis points out that even if the product is designed to be expensive, consumers will buy it.

    Coach's high-end Disney x Coach 1941 products, co operating with the US The Walt Disney Company, boosted sales growth.

    Beijing Business Daily reporter found that the price of this series of handbags as high as 4950-9500 yuan.

    By contrast, the performance of competitors is slightly weaker.

    Kate Spade's two quarter profit level did not reach the expected level, the group lowered its annual performance target, and Michael Kors was partly "retreated" by the department store because consumers lost interest.

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