Coach fourth-quarter net profit fell 12 percent try to respond to market competition transition

Recently, the American fashion design luxury accessories brand Coach announced fiscal 2013 fourth quarter earnings . The North American market by poor sales of handbags , its net profit fell 12%. External analysis , mainly because of market competition is increasingly intensified , forcing the market share shrinking Coach transition to lifestyle brand .

At the same time , Coach announced the resignation of two senior executives , which is the second since the previous Coach CEO Substitution new round of unrest.

Results showed weakness in North America

As of June 29, 2013 the first three months , Coach Group net sales of $ 1.22 billion , representing an increase of 6% in constant exchange rate, an increase of 9% ; net profit of $ 221 million , down 12% .

Coach Chief Financial Officer Jane Nelson announced on a conference call , the company's sales of negative growth in 2014 will continue to the end of the financial year . Current CEO Lou Frankford (LewFrankfort) also believes that the situation improved the company will be " a long process of many years " unless the situation to obtain substantial improvement stores .

Reported a fourth-quarter international sales rose 7% to $ 386 million , with sales up 17% , which continued to show strong sales in China , sales grew 35% , achieving double -digit same-store sales growth. Coach in China 8 new stores, so that the total number of stores in China to 126 .

It is worth mentioning that , Coach in the North American market, same-store sales fell 1.7 percent , far less than analysts had expected an average of 0.6% growth. Coach combined total global market share in North America for 63 %, therefore, this region sales fell unusual impact on the company .xzzqlcy$0802