Cork Group Shares Rose Sharply Before The Acquisition Or Imminent.

As the originator of light luxury, Coach

After the brand resumed last year, the first quarter of the four quarter of the three quarter returned to its first decline in revenue. This also allowed the brand's multi brand plan to be implemented as soon as possible.

As of the three quarter of April 1, 2017, Coach Inc. (NYSE:COH) (SEHK:6388) Co., Ltd. recorded a gain of US $0.43 per share, an increase of 7.5% over the same period of 0.40 a year. After adjustment, EPS was US $0.46, which exceeded 0.44 US dollars expected by Zacks and Thomson Reuters I/B/E/S.

However, the group's income during the period was $3.7%, down 3.7% from $1 billion 33 million 100 thousand in the same period last year, much lower than the $1 billion 20 million expected by Zacks, and Thomson Reuters I/B/E/S is expected to be $1 billion 30 million.

The group's net profit in the three quarter was US $130 million 300 thousand, an increase of 5% over the same period of 124 million 100 thousand US dollars in 2015.

The first super expected EPS stimulus, Coach Inc. (NYSE:COH) cardot group shares rose before the stock market, the stock reported 40.10 U.S. dollars, or 3.51%.

The group said that the increase in profits mainly benefited from the reduction of discount sales. Chief executive Victor Luis said in the earnings report that all departments of the group had gross margins, while the North American market continued to grow in the same retail brand under the difficult retail environment.

In the three quarter, Coach's sales of North American brand declined 5% from $499 million to $474 million, mainly due to the group's reduction in the retail channel strategy, but the same store sales recorded an increase of 3%. The 2% decline in retail business was mainly affected by the Easter calendar effect.

In the international market, Coach's first quarter revenue recorded a 4% decline, from $448 million to $430 million, of which 70 base points had a negative impact on exchange rate.

The Coach market in the Greater China market recorded a 2% decline in the three quarter sales period. The fixed exchange rate increased by 2%, mainly benefiting from the same store sales in the mainland market, while the Hong Kong and Macao market continued to be weak. The Japanese market recorded a 2% increase in the sales period and a 1% decline in the fixed exchange rate. The Asia Pacific market outside China and Japan recorded a low double-digit decline, mainly caused by the downturn in the Korean market and the double-digit growth of direct business in the European market.

As of the first quarter of April 1st, Coach Cox

The overall revenue fell to 4% US dollars to 915 million US dollars, of which the wholesale business in North America had a negative impact on the overall sales by 150 basis points.

The impact of the decrease in wholesale channel revenue is that the gross profit margin of the Coach brand has greatly improved by 180 basis points to 71.7% in the three quarter, of which the exchange rate has a positive impact of 20 basis points, operating profit has risen 250 basis points to 16.1%, and the 17.1% 17.1% operating profit has been greatly improved by 200 basis points compared to the same period last year.

Victor Luis Luis, chief executive officer, said in the conference call conference after the earnings report that the group's namesake brand 400+ dollar handbag sales accounted for 55% of the North American market, compared with 40% in the same period last year, indicating that the upgrading of the group has proved to be a great proof for the group. The three years of the group's failure were due to the loss of 400 dollar handbags, which positioned most of the products carried by the store at 300 US dollars, and finally met with consumers' short-term abandonment because of trying to return to the traditional price. Until more than a year ago, the creative director Stuart Vevers had brought a great change to the brand, and consumers had to pay the price of the brand again.

Victor Luis also points out that a series of cooperation with star Selena Gomez will be launched later this year. It points out that Selena Gomez has strong influence. The two Instagram related Instagram information released by the star will get 5 million and 6 million like respectively.

Footwear business Stuart Weitzman revenue in the three quarter was $80 million, a slight increase of 1%, and the gross profit margin increased by 180 basis points to 62.1%, up 390 basis points compared with the same period last year. The operating profit rate 4.7% fell by 120 basis points, and the operating profit margin of 6.9% after adjustment has dropped by 240 basis points.

The brand has just appointed Giovanni Morelli as creative director.

Coach Ian, President of Bickley, who was promoted.

Coach Inc., chief executive of Victor Luis, said that the group will focus on the two largest growth markets in China and Europe, while continuing to have strict cost control.

In addition, he stressed that "more importantly," the group announced a new leadership structure to implement multi brand strategy.

At the beginning of last month, the group issued two personnel appointments. The Joshua Schulman Schulman, from the Neiman Marcus Group Ltd LLC Niemann Marcus group, will join the new CEO and CEO of the brand name of the group, replacing the current CEO Ian Bickley, Joshua Schulman, which will be held on 5 in June, and will be promoted to the president of the global business development and strategic alliance of the same name group in July 2nd.

Prior to that, the market believed that Coach Inc. will buy its rival Kate Spade & Co. (NYSE:KATE) to enhance its revenue capability. This week, the market rumors group will buy the British footwear and accessories brand Choo Jimmy PLC (CHOO.L), which has just announced the sale of 1 billion pounds, and it is said that the group has quoted many times the price of the Burberry PLC (Bob) group, but it has been repeatedly rejected.

In the earnings report, the Coach Inc. group also disclosed no such potential pactions.

Tang Xiaotang, founder of fashion research consulting and investment organization No Agency, predicts that the Kate Spade Co. & amp; Co. paction will eventually be announced in early May at the beginning of the month.

According to the latest quarterly report of Coach Inc., the group's cash and cash equivalents reached $1 billion 891 million 900 thousand in April 1st, up 43.4% from a year earlier of $1 billion 319 million 400 thousand, which also provided a basis for the group's potential acquisitions.

The pre market share price trend also shows that Wall Street's profitability is expected to be positive.

As of the three quarter of April, the gross profit margin of Coach Inc. was increased by 190 basis points to 70.9%, and the operating profit margin increased by 15.2% basis points by 220 basis points, with a 16.3% increase of 160 basis points after adjustment.

Coach Inc.

The group maintains a low annual sales growth forecast for the whole year. The expected operating profit margin is even 18.5-19.0%, including the negative impact on the acquisition of Stuart Weitzman and the upgrading strategy of Coach's brand positioning, especially the closure of the batch business caused by the closure of 25% department stores in North America.

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