The Brand Coach Is Not Affected By The "Cold Spring" In The Fashion Industry.

When luxury brands are suffering from the "cold spell" of the industry, the performance of the US high-end fashion brand Coach has not been affected.

According to Coach's financial report for the third quarter of 2013 fiscal year ended March 30, 2013, its sales increased 7% to 1 billion 190 million dollars in the quarter compared with the same period last year. Sales at a constant exchange rate increased 10% and net income was 239 million US dollars.

In the third quarter of this fiscal year, Coach's operating income amounted to US $348 million, an increase of 3% over the same period of 337 million a year ago. The operating profit margin was 29.3%, compared with 30.4% in the same period last year. Gross profit in the quarter increased from $818 million in the same period last year to $880 million. Sales, general and administrative expenses accounted for 44.8% of net sales, representing an increase of 43.3% over the same period last year, reflecting the impact of the company's repurchase on Asian retail businesses.

It is worth noting that from the sales performance of the main business segments of Coach, sales in China continued to be strong, total sales increased by 40%, and same store sales increased by two digits. VictorLuis, President and chief business officer of Coach, said in its earnings report that international business is growing rapidly, especially in China, and that it is steadily achieving about $425 million in annual sales.

Du Yanhong, a retail researcher at CIC, told reporters that Coach has greatly improved its performance in China. On the one hand, it is related to the smaller scale of Coach in China, which accounts for only about 6% of the global market of Coach. On the other hand, Coach has stepped up its efforts to enter China in recent years, while it has opened a new store in China, and has also entered into e-commerce with Taobao.

In terms of the number of stores, Coach opened 100th new stores in mainland China this quarter, bringing the total number of stores in China to 118. Coach closed 2 stores in Japan, and the total number of stores was 191 at the end of the quarter.

Du Yanhong believes that the current US and Japan are still the focus of the Coach global market, but the two markets have limited potential for growth, while China will gradually become a major market for Coach.

In addition, VictorLuis said in its earnings report that men's clothing business is expected to double to $600 million this year, up by 50%. In view of the success of men's clothing business, Coach has expanded the men's clothing business to 600 parts of the world.

In Du Yanhong's view, Coach has been developing rapidly in the global market. But it is worth noting that the current global retail market demand is still not optimistic. Coach is expanding globally and needs to be vigilant against the risk of slump demand.