In The Fourth Quarter, Coach'S Net Sales Increased By 15%.

Finally, the earnings report became better.

In August 9th, Coach released its fourth quarter earnings in 2016 and some year-round results.

According to the financial report, compared with the same period last year, the net sales of Coach rose by 15% in the fourth quarter, and the net sales increased by 7% throughout the year.

Another good figure is that in the fourth quarter, Coach's same store sales in North America increased by 2%.

However, when referring to the sales data of the same store in Greater China and Europe, the earnings report did not give the same detailed data as that in North America, at least there was no "2%" figure.

In recent years, Coach has been trying to get rid of the "total discount".

Image.

In addition, due to the sluggish sales, Coach is always compared with the US brand Kate Spade and Michael Kors, also known as "light luxury".

All 3 brands have similar problems -- over popularity has diluted the brand image.

Coach's problems are: the design style is too old-fashioned, logo is too large, the discount is too large and frequent, and it is defined as a serious premium brand.

Last week, Kate Spade just released its second quarter 2016 earnings report.

Unlike Coach's performance recovery, Wall Street is still not optimistic about its brand because its earnings data are not good looking.

On the second day of Kate Spade's earnings, its share price fell 18.2%.

But Coach seems to have been aware of his problems for a long time.

Since 2013, Coach has been making brand pformation.

In the same year, Coach found a new creative director, Stuart Vevers, planning Coach to become a lifestyle brand, expanding the product line, adding parts of clothing and shoes, and launching a large number of men's series.

Subsequently, Coach also put forward a shift from "cheap luxury" to "modern luxury".

In addition, under the leadership of Stuart Vevers, Coach set up a high-end product line Coach 1941, which is an important step for Coach to revitalize its brand strategy.

In New York, February this year

This product line is well received.

Victor Luis, chief executive of Coach, said that Coach 1941 mainly wanted to attract two types of consumers: one is the old customers of Coach, the other is the young consumers who are willing to buy fashionable products through Coach's e-commerce channel.

On the other hand, Coach is relying on "reducing the channel to department stores".

Coach said that in the US, the regional group closed 250 stores in the department store, which accounts for 25% of the total department stores in North America.

Victor Luis said that department stores still play an important role in Coach's retail strategy, but the constant discount strategy of this channel undermines Coach's brand image.

Therefore, in Coach's Direct stores, the discount of products will be reduced. "Let consumers know the brand's global luxury concept when buying consumers at full price".

The quarterly report of Coach also listed the performance of Stuart Weitzman, a high-end shoe brand acquired by the group in 2015.

In the fourth quarter of the 2016 fiscal year, the net sales of Stuart Weitzman were $84 million, and net sales in the fiscal year amounted to $345 million.