Luxury Market Downturn Coach Net Profit Plunged 53.8% In The Three Quarter

The data showed that earnings per share were 0.32 dollars per share, a year-on-year decline of 53%, sales of $929 million, a 15% drop from the same period, and a slight increase of 3% after the pfer of the exchange rate.

In addition, its revenue in the three quarter was $146 million, down 44.5% from 263 million US dollars in the same period last year.

The operating profit margin was 15.8%, down 8.1 percentage points from 23.9% in the same period last year, and the gross profit of the company was 665 million US dollars, a 14.9% decrease compared to the same period last year.

In addition, marketing, general and administrative expenses accounted for 55.8% of net sales, up 8.6 percentage points over the same period last year.

The most important market in North America, the total sales volume decreased by 24% from US $648 million to $493 million in the same period last year.

In North America, direct sales fell 23% in the quarter and same store sales fell 23% year-on-year.

The sales volume of the same store decreased by about 11 percentage points owing to the reduction of official website promotion.

Sales in department stores also dropped by 30% over the same period last year.

As for the Chinese market, sales increased by 10%, and sales to US dollars increased by 8%.

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When the market is sluggish and the luxury goods ranks first in China, it will be more difficult to maintain the high-end brand image and price, and the traditional price increase and the high cold stance may not be the best strategy.

Expanding the emerging market and meeting the actual needs of the new generation of consumers is the best way for the brand to boost its performance.

Cozie has said that in fiscal 2014 and fiscal year 2015, it will spend 250 million -3 billion dollars for restructuring and pformation.

In fact, some brand pformation measures have been carried out since the end of last year, such as renovating stores and opening new stores.

Yang Baoyan, President and CEO of Beijing, said that the new positioning aims to inject new vitality into the brand so as to enhance the brand's yearning for consumers and further increase their affinity and interaction.

Analysts believe that brand pformation is more difficult to change performance in the short term, but a long-term strategy.

In the three quarter, the accelerated depreciation and the termination of tenancy related to the closure of the store resulted in an increase of $23 million in marketing, general and administrative expenses.

Cox Chi

The cost of the strategy is quite high. In the past three quarters, the expenses generated by the brand pformation amounted to $80 million, which increased the sales, general and administrative expenses of the company in the first 9 months by 75 million US dollars, increased the sales cost by 5 million US dollars, and reduced the net income after tax reduction by 53 million US dollars or the diluted earnings per share by 0.19 US dollars.