Coach Plans To Withdraw From Hongkong'S Capital Market

Just renamed Tapestry.

The group plans to withdraw from the capital market in Hongkong. COACH (06388.HK) has announced that it has applied to the stock exchange for withdrawal of Hongkong's depository receipt.

If approved, the Hongkong depositary receipt is expected to take effect in March 2, 2018 and will cease trading after the market closes in January 30, 2018.

Due to the low trading volume and the concentrated investment in the New York stock exchange as the first listed place, Tapestry group issued a statement in November 1st announcing its intention to apply for withdrawal of the Hong Kong securities issued by the Hong Kong stock exchange to withdraw from the stock exchange's main board.

Because the group has now become three independent.

The multi brand group including Coach, Kate Spade and Stuart Weitzman has been changed from "Coach" to "Tapestry" last month. The Chinese meaning is "tapestry", and the stock code of the group is officially changed from "COH" to "TPR".

The Group believes that the new name can better convey creativity, technology, authenticity and inclusiveness to consumers, and provides more possibilities for the group's future acquisition plan.

According to the world clothing and shoe net, Tapestry sales rose by 24% to 1 billion 290 million dollars in the first quarter of September 30th, gross profit margin was 59.3%, operating profit decreased 4% to 16 million 900 thousand US dollars, and net profit increased 3.5 times to 6 million US dollars from last year's 6 million US dollars.

Despite significant growth in overall sales of Tapestry group, sales of core brand Coach fell 3% to $924 million, while global same store sales fell 2%, operating profit of 198 million dollars and gross margin of 68.4%.

The group said in its earnings report that Coach's performance during the period was mainly affected by hurricanes in North America and typhoons in Asia.

Sales of newly acquired Kate Spade were recorded at $269 million, while same store sales fell 9%, operating losses were recorded at $135 million and gross margins were 61.3%.

According to the financial report, the performance of the brand was mainly affected by measures such as reducing sales channels of e-commerce, trying to sell more full price products, and so on, which led to a higher inventory level than before.

Analysts had predicted that Kate Spade would lose about 8.8% of its same store sales.

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Footwear brand Stuart Weitzman is stable, with sales rising 10% to $96 million, operating profit of $8 million 400 thousand and gross margin of 58.1%.

In the 2018 fiscal year, Tapestry Group expects sales to increase to $58 or $5 billion 900 million under the Kate Spade holdings, of which Kate Spade sales are expected to exceed $1 billion 200 million and operating profit increases from 22% to 25%.

Some analysts point out that the light industry has broken out this year, but perhaps it has just begun.

After buying Jimmy Choo, Michael Kors group did not intend to stop.

John D Idol, the group's chief executive, said at the recent Morgan Stanley Global Consumer and retail conference that he was actively looking for new targets. He stressed that he would prefer to buy mature and potential brands, but did not disclose specific details.

In July of this year, Michael Kors group (NYSE:KORS) bought the British luxury shoe brand Jimmy Choo for $1 billion 200 million. The paction was officially completed at the end of October, and Jimmy Choo has been delisted. Now it is officially classified as Michael Kors group.

Some analysts said that Michael Kors group bought Jimmy Choo, indicating that the group's decision to enter the multi luxury brand group.

In the past 3 months, the stock price of Michael Kors has increased by 32%, while the Tapestry group has almost no growth. The market capitalization of the two groups is 8 billion 800 million and 11 billion 800 million respectively.

More interesting reports, please pay attention to the world clothing shoes and hats net.