Coach Has Achieved Great Success In The Recovery Trend Of Luxury Goods.

The light luxury industry is accelerating recovery. The US luxury handbag brand Coach released its first quarter report on fiscal 2017 in October 1st. In the three months ended October 1st, group net profit rose 21.8% to 117 million 400 thousand dollars compared with the same period last year, and net sales grew 0.7% to 1 billion 40 million US dollars, slightly lower than Wall Street's projected $1 billion 70 million.

In addition, Coach also reiterated the company's outlook for the 2017 fiscal year in August, pointing out that it would maintain the expected low growth rate of single digit income, and expects net profit and diluted earnings per share to achieve two digit growth this year.

After the release of the earnings report, Coach shares rose 2.26% to $36.70 per share, and the market value of the company is now $10 billion 336 million.

CEO of Coach group

In order to save Coach's previous downturn, the company has repositioned its brand, simplified distribution channels in North America, and reduced its distribution in North America.

Shipments and other measures.

According to the data of the first quarter of fiscal year 2017, sales, gross profit and operating profit of the brand increased, and the net profit growth was as high as double digits.

The gross profit of the group increased 3% to 715 million US dollars over the same period last year, and sales cost fell 1% to 549 million US dollars and business profit increased 17% to 166 million US dollars.

However, department stores are still the biggest headache for light luxury brands.

In the latest quarter, US sales fell 3% to $545 million last year.

Coach department stores in the United States continued to decline in sales and promotional activities were frequent. The company said earlier that it was preparing to close its 1/4 stores in American department stores.

In the latest quarter of July 2nd, sales in the US Coach store grew by 2%, but sales in department stores fell by two digits.

It is noteworthy that, in addition to the US market, Coach sales in other parts of the world grew by 7% over the same period last year, reaching US $395 million, and the Stuart Weitzman, which was acquired last year, has a net profit of 88 million US dollars in the quarter.

Coach said that the brand is investing heavily in its management and creative talents, and it also pays heavily to support the long-term development and multi class growth of the brand.

Victor Luis revealed that the company is vigorously promoting product innovation to attract global consumers, especially the millennial generation.