Coach'S Turning Point Is Yet To Come.

Coach closed down 15.5% in the third quarter of March 28th this year, only 929 million US dollars (about 5 billion 760 million yuan).

Although Victor Luis, the chief executive of the brand, insisted in the telephone interview that the latest quarterly performance, including a 24% fall in the North American market, was "within our expectation", but the quarterly forecast given by Coach was $950 million (about 5 billion 890 million yuan).

Obviously, the actual harvest in the third quarter is far from the standard.

For most investors and Wall Street analysts, the second quarter ending January 29th this year indicates that the US company, which is struggling to pform from 2014, will soon face a turning point.

However, in view of the third quarter's performance, they think Coach's counterattack may be later than expected.

cause

There are more than one reason for the downturn.

In the Coach stronghold, North America, the company shut down a large number of poorly performing full price stores and discount stores. Since the beginning of 2015, 69 shops have been closed.

At the same time, whether in self run stores or department stores, the US brand significantly reduced sales promotions, thus resulting in the loss of large numbers of passengers.

Sales fell 23% year-on-year, while department store sales fell 30% year-on-year.

At one time, Coach was held 3 times a week, and only an invitation system discount was held in mid March.

In an earlier telephone interview, CEO Victor Luis said that customers had realized that

He is not keen on discount in the past. He also expects sales to continue to decline as sales decrease.

Although revenue is not as good as expected by investors, Luis and chief financial officer Jane Nielsen repeatedly reiterated that Coach's pformation plan will not change.

The company will continue to shut down its poorly selling stores, while opening new stores and refurbishing existing stores according to the concept of "modern luxury" stores.

In the third quarter, Coach has 40 stores showing new concept designs, and 104 stores will be renovated in the next two months.

Luis said: "the new concept stores, whether newly opened or renovated, have performed better than the rest of the shops."

At present, the only exciting news may lie in Coach's intention to increase the product of the new creative director, Stuart Vevers, who has been "overwhelmingly positive feedback" released this week in New York fashion week.

In addition, Coach plans to launch the first perfume this year to cooperate with perfume and cosmetics manufacturer Interparfums.

Coach expects to complete the takeover of high-end women's shoes brand Stuart Weitzman in the next two weeks.

The company's chief executive said it will help Stuart Weitzman expand globally, and Coach will benefit from its (Stuart Weitzman) "recognized fashion leadership".