Up by +1% at current exchange rates, loss by 1% at constant exchange rates, Wall Street’s forecasts on Coach were missed by an inch. Coach’s first quarter of the new fiscal year is good, but below expectations. At October the 1st, the US brand had sales of $ 1.04 billion (Big Apple’s analysts were expecting $1.07 instead). The brand has lost 3% in the US and 7% of the Japanese market, however, it has established itself with a double-digit growth in Europe. The brand controlled by Stuart Weitzman, who recently passed under the creative guidance of Giovanni Morelli, recorded instead of 87 million dollars in revenues. Victor Luis, CEO of the group, said he was satisfied with the results. Coach main target, for now, is to raise the brand’s prestige perception among the public. In this sense, it is vital a rethinking of its retail strategy. The brand has withdrawn its products from 25% of the multi-brand stores in the US where it was previously displayed. It also expects the openings in Beijing, London and Milan of its newly designed boutiques. Soon, it’s planned the opening of the new flagship store on Fifth Avenue in New York. It’s here that Coach will celebrate the 75th anniversary with a show in which will parade the men’s and woman pre-collections for autumn 2017 on December the 8th. The CEO Luis did not want to comment on the rumours about the merger with the English manufacturer Burberry spread in late October by financial blog, Betaville.
Coach tries to forget its poor first quarter looking ahead to his new brand positioning strategy (with Burberry in sight)
