The Us Light Luxury Brand Coach Will Be Fully Launched, And The Strategic Spanformation Plan Is In Full Swing.

As an important step in strategic reform, Coach The group first made the adjustment of the top management structure. Recently, the Group CEO Victor Luis has officially appointed Joshua Schulman as the CEO of Coach brand. At present, Coach is under the leadership of the creative director Stuart Vevers, and the spanformation plan is being carried out in an all-round way. It is noteworthy that Coach has great potential for business growth, and the sale of this business has entered the $1 billion club.

The picture shows Coach brand CEO Joshua Schulman.

Joshua Schulman will take office in June 5th and will be responsible for all the Coach brand's global business and report directly to Victor Luis. Joshua Schulmam has a wealth of luxury experience, and has worked in the department store Bergdorf Goodman for 5 years. Its term of office will end in May 10th. Prior to that, he served as CEO of Jimmy Choo and executive vice president of Gucci.

In January 2014, Victor Luis joined Coach group as chief executive. He once said that Coach group can go far beyond light handbag products. After taking office, Victor Luis has been committed to building Coach group into a multi brand portfolio of light luxury Empire, and proposed an expansion strategy based on acquisitions. Under his leadership, the Coach Group acquired the designer shoe brand Stuart Weitzman for $530 million in 2015, which contributed $345 million in sales to the group last year.

According to the analysis, Joshua Schulman will become the CEO of Coach brand, which will enable Victor Luis to focus more on the design and implementation of the acquisition strategy, and further expand the Coach brand matrix.

It is noteworthy that in recent months, rumors about the acquisition of Kate Spade (NYSE: KATE) will continue. Earlier, there were many media reports that Coach was the most likely buyer to win the auction, and Kate Spade earned nearly $1 billion 400 million last year.

Some people have pointed out that if Coach group can successfully acquire Kate Spade, its operation mode will be LVMH, Kai Yun and so on. Luxury goods The group is closer.

As of the second quarter of last December 31st, Coach group net profit increased by 17.4% to $199 million 700 thousand over the same period. The group's flagship brand Coach sales in North America rose 2% to 744 million US dollars in the same period last year, same store sales increased 3%, sales of wholesale channels such as department stores dropped by 30%, Coach sales in other parts of the world increased 3% to 448 million US dollars, of which sales in Greater China were the same as last year, and the growth rate in Japan was 9% over the same period last year.

Ian Bickley, President of Coach group, has revealed that since 2008, when Coach has reclaimed all franchises in China, the sales performance of the market has gradually increased, accounting for 20% of the total revenue of Coach's global business. The group is very optimistic about China's market potential. It plans to add 20 to 25 stores in the Chinese market this year.

As for the Stuart Weitzman shoe brand, total sales increased 25.5% to $118 million during the period, and gross profit rose 26% to 76 million US dollars.

Victor Luis has said at the beginning of this year's earnings conference that handbags, accessories and shoes will be the first choice for Coach group's future acquisition. For the acquired shoe brand Stuart Weitzman, besides shoes, the group will also develop handbags and other accessories products.

Mortimer Singer, chief executive officer of Marvin Traub Associates, also believes that as a group led by accessories, Coach group's brand expansion strategy based on accessories has indeed become the potential of multi brand groups. After all, the major source of income of LVMH, Kai Yun and Li Feng is also accessories products such as handbags and shoes.

In October of last year, sources said that Coach had planned to acquire Burberry in cash and shares, and financial blog Betaville quoted two sources as saying that Coach and its financial advisor Evercore had studied potential acquisitions. Some analysts pointed out that if the two combine, it is expected to become a new luxury giant with a market value of nearly $20 billion.

David Silverman, senior director of debt rating agency Fitch Ratings, agreed with Victor Luis's acquisition strategy. It said that the decision made by Victor Luis after joining Coach group was very correct. It saved the brand's image due to excessive promotion and brought positive income to the group, which made Coach regain the consumer's love.

However, John B. Morris, a senior retail analyst at BMO capital, thinks that it is too early to assess the investment strategy of Coach, and whether Victor Luis's strategy is right remains to be verified. He also stressed that while Coach is busy with acquisitions, it should not ignore the harsh retail environment. The rapid change of millennial consumer preferences is a tough challenge for every brand.

Coach group's share price fell more than 1% to $39.63, nearly 3 months ago. Coach The group's stock price has risen by 13.5%, and its market value is about $11 billion 100 million.

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