Cox'S Brand Has Fully Recovered Profits Surged 6 Times

As the originator of light luxury, Coach

The brand is making use of its industry's most solid.

Popularity and quality helped the parent company Coach Inc. (NYSE:COH) to accelerate its strong recovery.

As of the four quarter of July 2, 2016, the sales of Coach Cox brand North American same store finally recorded a 2% growth.

The strong performance contributed to the same store growth rate of 1%.

This is the first time that the brand has recorded a positive growth for the first time in the past three years.

Fourth quarter, with the sales growth of Coach, 9% of the North American market, boosted the brand's quarterly sales by 11% to 6.06 billion US dollars, but the wholesale business outlets recorded double-digit declines.

Coach's international business continues to improve, with sales in the international market rising 15% to 450 million dollars in the fourth quarter and 13% in fixed exchange rates.

In the fourth quarter, the Coach China market has recorded an increase of 5%. The double-digit increase in the Chinese mainland market and the positive growth in the same store offset the weakness in the Hong Kong and Macao markets. The fixed income exchange rate recorded a 10% increase in the fourth quarter income of the Greater China market.

As for the Japanese market, the fourth quarter income recorded a growth of 7%, an increase of 5% per cent under the fixed exchange rate. The relative weak growth was mainly affected by the strong yen, resulting in the reduction of Chinese tourists.

The European market is the most robust market for brands, with double-digit growth in sales and same store sales.

As of the four quarter of July 2, 2016, the gross profit of Coach Cox brand was recorded at $737 million, up 10% from the same period last year, and gross profit margin was 68.8%, down 70 from the previous year.

The fourth quarter operating profit of the brand was recorded at 115 million US dollars, up 164% over the same period last year, and 10.7% in the operating profit period, a 620 point rise in the profit period. The adjusted operating profit period recorded US $171 million, an increase of 40%. The adjusted operating profit margin was 16%, up 230 basis points.

For the recovery of Coach's brand, the market has long expected.

At the end of last month, Suisse Group AG (VTX:CSGN) Credit Suisse issued a report that continued to be optimistic about the group while cautious about its rival Michael Kors Holdings Ltd. (NYSE:KORS).

Robert W. Baird, an analyst at the bank, therefore gave Coach Inc. Inc.'s rise from neutral to winning the market. It believed that Coach had regained its pricing power, and the bank had confidence in the popularity and quality of its brand.

In July 18th, another investment bank Baird Equity Research also gave the Coach Inc. group to raise the rating treatment, and also raised from neutral to winning the market.

In its July 27th report, Credit Suisse said that Coach was losing its branding effect and the retail price was stable. In contrast, rival Kors Michael had to rely on strong discounts to fight poison and quench thirst.

According to the Union's Quad Analytix research on 800 thousand handbag stocks, Michael Kors has already lost its handbag in Nordstrom Inc. Inc. Nodes Tron and Macy's s Inc. Messi department store online, and its share is the first, and its share is occupied by Calvin Klein, Inc. and Cox.

It is reported that in the two quarter of the Michael Kors natural year, the rate of distribution in the Macy 's Inc. Messi department store has dropped from 12% in the first quarter to 10%, while in Nordstrom Inc., the number of 5% in the first quarter has dropped to 3%.

At the same time, the Calvin Klein distribution rate ranked first in Macy 's Inc. Messi's department store, while Nordstrom Inc., N. N. de dragon, had Kate Spade first.

In terms of efficiency, Michael Kors, Coach and Kate Spade were flat in the two quarter and flat in the first quarter, while Tory Burch fell by 7%. Despite this, Tory Burch still had the highest flat effect of $387, Coach followed by 301 dollars, Kate Kate was 265 dollars, and the lowest was 262 dollars.

The two quarter earnings report of Coach Cox rival Kate Spade & Co. (NYSE:KATE) released earlier in the quarterly report showed that although the group had double-digit growth in both sales and profits, its profitability did not meet the market expectations, and the group had more fully reduced its annual performance target.

Kate Spade & Co. CEO Craig Leavitt also reported poor earnings in the last quarter. He pointed out that the most striking reasons include the harsh retail environment and the weakening of the strong dollar on tourists' spending power.

With the continuous recovery of Coach's brand, the Coach Inc. Group recorded a net profit of 81 million 500 thousand in the fourth quarter, a 597% jump over the same period of the same period last year, with a profit of $0.29 per share, a 625% jump over the same period of 0.04 dollars a year, adjusted net profit of 126 million US dollars, and earnings per share of 0.45 US dollars, far exceeding Zacks analysts' expectations of 0.40 dollars, a sharp increase of 47% over the same period last year.

Favorable quarterly reports stimulated Coach Inc. (NYSE:COH) to speed up nearly 4%.

In the fourth quarter, the total revenue of Coach Inc. Cox group was 1 billion 154 million 600 thousand US dollars, up nearly 15% from 1 billion 4 million 100 thousand US dollars in the same period last year, with a gross profit of 7.827 billion US dollars in the period, 14% higher than the 687 million 700 thousand US dollars in the same period last year, and a gross margin of 67.8%.

The operating profit in the four quarter was 1.168 dollars, up 200%, the operating profit rate rose by 620 basis points to 10.1%, and the operating profit was adjusted to 175 million dollars after adjustment, with 39% growth and 250 basis points after the adjusted operating profit margin 15.1%.

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Coach Inc. Cox group's previously acquired shoe brand Stuart Weitzman parent Weitzman Stuart Weitzman Holdings LLC has recorded $84 million in revenue and 2 million operating profit in the fourth quarter.

The group also said that it would appoint new creative director for the brand. Giovanni Morelli will replace the brand name founder Stuart Weitzman as creative director, and will take effect in May 5, 2017.

For the 2016 fiscal year, the Coach brand recorded a revenue of US $4 billion 150 million, a 2% increase in fixed exchange rate, a 1% decline in gross profit of 2 billion 850 million US dollars, a 68.7% gross profit margin, a profit of 621 million US dollars, a 728 million decrease of 7% after adjustment, and an operating profit margin and adjusted operating profit rate of 15% and 17.6% respectively.

Coach Inc. Cox group's revenue in the fiscal year 2016 increased by 7% to US $4 billion 490 million, and the fixed exchange rate increased by 9%. Gross profit margin of US $3 billion 50 million increased by 5%. The gross profit margin decreased by 150 basis points compared with the same period last year. The gross profit margin was 68% after adjustment. The profit margin was also as high as 160 basis points. The operating profit was 654 million dollars, and the operating profit rate dropped by 150 percentage points to the average.

Coach Inc. Cox group's net profit for the 2016 fiscal year was 460 million 500 thousand US dollars, up 14%, earnings per share of US $1.65, adjusted net profit of 5.62 billion US dollars, an increase of 4% compared to the same period last year, adjusted EPS to US $1.98.

For the current 2017 fiscal year, Coach Inc. expects to have a median growth in sales.

On Monday, Coach Inc. (NYSE:COH) Cox group's share price closed at $41.45, down 1.38%, but the stock has soared 27% this year, far exceeding the Standard / Poor's 500 standard & Poor's 500 index 7% growth, and the stock jumped 31% in the past year.