Cox Is Re Capturing Consumers' Hearts.

As the originator of light luxury, Coach

The brand is making use of its industry's most solid.

Popularity and quality helped the parent company Coach Inc. (NYSE:COH)

Brand fourth quarter North American market entity retail business recorded a strong 4% same store sales growth.

As of the first quarter of October 1, 2016, the Coach Inc. Cox Group recorded a net profit of US $117 million 400 thousand, or $0.42 per share, compared with the same period last year, 9640 US $10 million, and the earnings per share of US $0.35 rose 21.8%. After adjustment, the earnings per share of US $0.45 were up by 10% over the same period last year, which is in line with Factset's expectations, exceeding Zacks's expected 0.44 dollars.

After the first sale of the same store in the core North American market in the fourth quarter of fiscal year 2016, Coach is now re capturing the "heart" of consumers, which is obviously a greater pressure on the group's competitors, especially in the rapid expansion of Michael Kors Holdings Ltd. (NYSE:KORS), which is in the downturn of Coach.

Because the overall fashion and the growth of the handbag Market slows down, it has formed a war of attrition and the situation that you have entered my retreat.

In addition, the impact of the Coach discount sale on the brand is now repeating itself on Michael Kors. It also includes Michael Kors, which is also facing the most unfavorable situation in the main North American market.

According to the RBC Capital survey, the "millennial generation" has only seventh handbags in terms of luxury consumption intention.

Willingness to spend luxury goods for the millennial generation

As of the first quarter of 2017 fiscal year October 1, 2016, the sales of Coach Cox brand in North America in the same store recorded an increase of 2%. The group reduced sales, resulting in a decrease in the sales volume of the electricity supplier discount flash sale in the same store, which offset the increase in the entity business.

In the first quarter, brand North American market revenue fell to 2.9% 5.45 billion dollars, compared with 561 million in 2016.

The decline in revenue was mainly due to a sharp decrease in wholesale channel revenue by 30%.

At the launch of the annual report at the beginning of August, Victor Luis, chief executive of Coach Inc., said it would reduce department stores' business and reduce 25% of the 250 stores in department stores.

At present, the department store channel accounts for about 5% of Coach's brand.

Saks Fifth Avenue Inc. and Nordstrom Inc. Nord, the wholesalers of the department store, have all said that the current retail environment is difficult.

Due to the sluggish sales of fashion and accessories products of major department stores in North American market, the sales of leather goods directly reduced in department stores, while discount sales increased. This also caused the contradiction between brands and department stores.

In addition to Coach Inc., the Michael Kors Holdings Ltd. has also expressed its dissatisfaction with department stores, and said it would reduce the proportion of the channel.

The market had expected that the size of department stores would have a 1% impact on Coach's sales.

North American department stores reduce sales of handbags products

As for the international market, in the first quarter, Coach's brand recorded a sales of 3.95 billion US dollars, an increase of 7% over the same period last year.

The Greater China market (covering Hong Kong, Macao and Taiwan) recorded a 5% increase in the fixed exchange rate in the first quarter, of which the mainland market recorded significant double-digit sales growth while the Hong Kong and Macao market continued to slump. The Japanese market grew by 11% in the period of the market, but the fixed exchange rate declined by 7%. The downturn in the Japanese market was mainly due to the decline in the consumption of tourists in mainland China.

In addition to the two largest markets in China and Japan, the Asian market recorded low single digit growth in the first quarter, and double-digit sales growth in the European market period.

There was a moderate increase in international wholesale business, mainly driven by local consumers in various markets, while tourist consumption declined.

In the first quarter, the overall income of Coach Cox brand was recorded at 950 million US dollars, an increase of 1%, which stipulated that the exchange rate would be reduced by 1%, of which the adjustment of wholesale channels in North America had 1.5% effects on the total revenue.

After adjusting for the first quarter, the brand recorded a gross profit of 664 million US dollars, an increase of 3% and a gross margin of 120 basis points to 69.8%.

Victor Luis has expressed satisfaction with the continuous improvement of the group's namesake brand in North America in its earnings report, and said that the brand will continue to focus on upgrading and positioning, so as to promote the group's progress in all key financial indicators such as sales, gross profit and operating profit.

As of the four quarter of October 1, 2016, the overall revenue of Coach Inc. Cox group rose to 0.7% US dollars to 1 billion 37 million 600 thousand US dollars, which was lower than the market forecast of US $1 billion 70 million, up from 1 billion 30 million 300 thousand US dollars in the same period last year, and gross profit increased 2.6% to 7.147 billion US dollars, which was 696 million 500 thousand US dollars in the same period last year, 68.9% percentage points, and a sharp increase of 130 basis points. The key index of operating profit rose to 17.3% US dollars, compared with the US dollar of $100 billion in the same period last year.

As for shoe brand Stuart Weitzman, it recorded $88 million in revenue and 5 million operating profit in the first quarter.

Stimulated by good financial results, the deadline for Tuesday's launch was no more than 7:21 AM at 7:21 p.m. Eastern time. The shares of Coach Inc. (NYSE:COH) Co., Ltd. rose 3.12% to $37.01. The company's stock price closed at $35.89 on Monday, an increase of 0.48%.