Coach Will Expand Its Business In Emerging Markets And Enhance Its Performance.

According to the world clothing and shoe net, after the referendum in Britain last year, Luxury goods Sales fell sharply. According to some analysts, the purchasing power of consumers has declined, and the development of luxury goods industry has slowed down. Companies like LV, MichaelKors (KORS) and Burberry are expected to be affected.

On the other hand, Coach is expected to reverse the downward trend of sales. Coach handbags, accessories and footwear The sales performance of these products is very good, which has made the company's stock a long-term investment choice. The dividend yield of the company is also very stable, which is 3.5%.

　　 Coach It was originally a family workshop opened in the 40s of last century. Over the years, the company has optimized its distribution strategy and has multiple retail channels, including retail stores, e-commerce platforms and boutiques.

Coach also seems to have a business model that can avoid risks. Despite many retailers' poor holiday sales, Coach has maintained growth momentum. Coach adjusted earnings per share were $0.75, higher than Wall Street's expected $0.74 per share. Revenue grew by 4% over the same period last year, to $1 billion 320 million, in line with analysts' expectations. The same store sales in North America increased by 3%, exceeding the expected 2.2%. In recent quarters, Coach has benefited from brand innovation, and it has boldly sought to spanform its advanced handbag brand, just as the company launched in 1941. Coach's retail sales of handbags at more than $400 are 50% higher than its total retail sales, much higher than 30% a year ago.

In addition, Coach plans to adjust product lines to cater to consumers' changing preferences and needs. The company has improved the appearance of leather products and extended the existing product line from women's products to accessories and clothing that men and women can meet. This change will make Coach attract more consumers, thus making the company profitable.

"For us, not just last quarter, we have been working hard to develop this strategy in the past two and a half years. We are making progress, "Victor Luis, chief executive of Coach, said in a recent interview with Brian Sozzi of The Street. Luis added, "this is a process of continuous innovation, bringing new ideas to our products."

Coach continues to expand its global market. This means that companies need to innovate their physical shops. Coach plans to reinvent 700 stores and close 75 poorer stores, a move that will enhance corporate performance.

Coach's shares have 17 times the expected price earnings ratio, compared with 20 times the average data of the luxury goods industry. Investing in Coach can be regarded as a very cost-effective option. The decision to revitalize its product line and store appearance will help Coach become a strong brand in the industry. In addition, by expanding its business to emerging markets, Coach can also increase its share in potential markets, which may be a major opportunity to achieve profit growth.

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