Cox Strong Recovery In The Two Quarter, Same Store Sales Growth Exceeded Expectations

According to the world clothing shoes and hats net, 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's strong recovery, the group's leather brand two quarter North American market entity business recorded 4% strong same store sales growth, the best quarterly performance for four years, unchanged from the first quarter, if coupled with e-commerce business North American market same store sales in the two quarter, 3% of the same store sales growth exceeded

The expected 2.4% of Consensus Metrix has been rising for three consecutive quarters.

Benefiting from the continued recovery of the North American market, the strong profit growth of 17.4% in the two quarter of December 31, 2016, Coach Inc., was increased from $170 million 200 thousand in the same period last year to $199 million 700 thousand, and earnings per share also increased from $0.61 to 0.71 US dollars. Excluding the acquisition and non operating expenses, two quarter EPS reached 0.75 dollars, exceeding the expected 0.74 dollars of Thomson Reuters I/B/E/S and the expected 0.73 dollars of Zacks.

The expected quarterly results stimulated Coach Inc. (NYSE:COH) (SEHK:6388). The company's stock price rose by more than 3.5% before the deadline. The deadline was 36.71 7:33AM, which narrowed to 2.03%.

In the two quarter, the Coach sales of North American brand sales increased by 2% in real terms, from 731 million US dollars to 744 million US dollars in the same period last year, and the sales volume of this channel was reduced by 30%.

During the period, the sales of the brand international market recorded an increase of 3%, from 437 million US dollars in the same period last year to 448 million US dollars, and the fixed exchange rate increased by 1%.

The sales of fixed exchange rate in the two quarter of Coach, Hongkong, Macao, and the U.S. dollar were basically flat. Sales growth mainly benefited from the continued strong sales growth in the mainland of China, while the improvement in the number of sales in the mainland and the mainland of China. The Japanese market recorded a 9% increase in the two quarter and a 2% decline in the fixed exchange rate. Excluding other Asian markets such as Japan and greater China, there was a decline in the number of low single digit sales in the two quarter.

The European market continued strong and continued double-digit growth in the two quarter.

In the two quarter, Coach's 830 million profit gross profit increased by 4%, gross margin increased by 130 from base point to 69%, of which 30 base points benefited from the exchange rate. The operating profit of the brand was recorded at 264 million US dollars, up 9% over the same period last year, and the operating profit margin was 21.9%. Similarly, there was a promotion of 130 bases. In the non-GAAP profit calculation period, the operating profit period was 271 million dollars.

By the end of the two quarter, the Coach brand was operating for 960 stores, of which the North American market increased by 3 to 434, the Japanese market was 191, the big China market increased 3 to 191, the Asian market increased by 1 to 104, and the European market increased by 1 to 40.

Victor Luis, chief executive of Coach Inc., said in a statement that in view of the extremely difficult and challenging global retail environment at the moment, the group was pleased and proud of the group's holiday season.

Group North America continues to achieve sales growth, while profitability continues to improve. In addition, the international market can continue to expand, and Europe and Mainland China continue to achieve strong growth.

As of the two quarter of December 31, 2016, the Coach Inc. Cox Group recorded a revenue of US $13 billion 217 million, compared with 2016 yuan in the same period of 1 billion 273 million 800 thousand US dollars in the same period, an increase of 3.8%, of which 0.4% of the exchange rate has a favorable stimulus, but the North American market department stores closed 1% of the negative impact.

In the two quarter, the Group recorded a gross profit of US $906 million 200 thousand, an increase of 5.5% over the same period of 859 million 100 thousand a year, an increase of 6% in non-GAAP and a 68.6% in the gross margin period, an improvement of 120 basis points compared with the same period last year.

Operating profit recorded an increase of 6.3% to $277 million 400 thousand in the two quarter, compared with $261 million in the same period last year, while operating profit margin improved by 50 basis points to 21%. On the basis of non-GAAP, the operating profit was $294 million 300 thousand, a 3.3% increase over the same period last year, while non-GAAP operating profit contracted slightly by 10 basis points to 22.3%.

Non-GAAP calculation, Coach Inc. Group recorded a net profit of US $211 million 200 thousand in the two quarter, an increase of 12.1% over the same period of 188 million 400 thousand in the 2016 fiscal year, and EPS 0.75 US dollar has a 10.3% increase over the same period last year.

In the two quarter, the group's newly acquired shoe brand Stuart Weitzman Weitzman recorded an increase of $118 million, up 26% from the same period last year, compared with 94 million US dollars in the same period last year. The gross profit of the brand in the two quarter also increased 26% to 76 million US dollars, with gross profit margin 64.3%, operating profit plummeted from 23 million dollars in the same period last year to 13 million dollars, and the operating profit rate plummeted by 820 basis points to 820.

Coach Inc. Cox group has expected the current 2017 fiscal year income to have low to mid digit growth, of which the beneficial exchange rate 1.0-1.5%, but in view of the strong dollar, the first reduction of the exchange rate stimulus to 0.5-1.0%.

At the same time, the group maintained the expected operating profit margin of 18.5-19.0% and double-digit net profit and EPS growth expectations.

On Monday, Coach Inc. (NYSE:COH) (SEHK:6388) Co., Ltd. shares reported a 1.12% increase in share price of $35.98, which has recorded an increase of about 3% this year, slightly better than the 2% increase in the S & P 500 index.

Coach Inc. Michael Kors Holdings Ltd. (NYSE:KORS) will release its quarterly report early next month, and is expected to continue its decline.

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