Interpretation Of The New Magic Weapon Of Cox's Brand

The new buzzword "Coach" these days is "magic and logic", that is to combine creativity, design and creativity with P based rigorous decision making based on knowledge. This duality is reflected in the company's new and old leaders: Chairman and CEO Lou Frankfurter (Lew Frankfort) and President and chief business officer Victor Luis (Victor Luis). < /p >
Frank, P, aged 67, sits in a small white conference room at New York's headquarters in coco Chi, wearing loose trousers, vest and open shirt. It is full of personal charm and vitality. "Ford" Lewis, 47, wears his jeans and wears his fingers on his lips. He is more steady. When he speaks of design and data, he has feelings and accuracy. Lewis joined the company eight years ago and became the head of Japan, and led her to achieve a very successful expansion in China. < /p >
< p > Frank Ford said: "my new role is to promote transformation with Victor; I will provide suggestions and strategies. I am very confident that under our leadership, we will resume growth. " < /p >
< p > handsome handover will be handed over in less than a month. Frank Ford will be transformed into executive chairman. Coco has been promoting Frank, Ford and Lewis as a group of two people, hoping that their personality and skills will complement each other, pushing the 72 year old company through one of the most critical periods in its history. Consumer spending is sluggish as the economy is still at a foothold. In the competition of Michael Kors and other companies, its sales revenue declined after two years of growth in several years. In fact, it is precisely because investors are worried about the weakness of the sales in the competitive market that this once growing stock has become a processing commodity. The current price per share is $56, which is 16 times the expected profit. < /p >
< p > some investors are snapping up the stock, believing that it can reach 70 dollars in two years. These bulls believe that Lewis is the right person to continue leading the transformation of the company and making it a brand of a global lifestyle brand from production accessories and handbags. "I am pleased to see that he recognizes the need for change," said Ann Mileti, a senior portfolio analyst at Wells Fargo Asset Management in. He said, "obviously the brand needs to be renewed and extended to life style", and according to Lewis's performance in the past, "he has this ability". < /p >
< p > Lewis is also expected to continue to expand to the promising growth areas of ready-made clothes and men's accessories. These areas are believed to have an opportunity of 5 billion dollars around the world. < /p >
P, founded in 1941, originally made leather products in a loft in Manhattan. It says it occupies 29% of the US $10 billion 300 million premium handbags and accessories market, ahead of other manufacturers. The company now has more than 1000 retail outlets, most of them in the US and Asia. These stores sell all kinds of accessories, such as belts, handbags, wallets and watches. Women's handbags account for 58% of sales revenue. Frank and Ford helped create a cheap luxury market with classic and sophisticated handbags. The average selling price of these handbags is slightly below $300, but there are also more than US $1000. Since its listing in 2001, its share price has risen more than 25 times. < /p >
Less than P, it is not surprising that the success of Kou Chi also spawned challengers. These challengers were attracted by Cox's over 70% profit margins leading the industry. In the past three years, the market share of Michael Kors has risen from about 5% to about 16%. < /p >
Lewis P has repeatedly said that the expansion of a href= "//www.sjfzxm.com/news/index_c.asp" and "Kou Chi" /a, especially in China, is one of its key growth pillars. In the quarter ending September, its sales revenue in China increased by more than 35%. Because of its fruitful economic policy, Japan is also a long-term growth market for the company. It has been expanding in Japan and now operates 190 stores. But in the short term, sales fell by 2% in the quarter ended September. Lewis said that Japan's consumption tax rate is going to increase from 5% to 8%, which also makes the company feel "nervous" to a certain extent. But Cox is still planning to open 5 to 10 stores in Japan in fiscal year 2014, most of which sell men's products. < /p >
Lewis, who was born in Portugal and grew up on Rhodes Island, points out that his personal experience has made him have a broad strategic vision of how to build a brand on a global scale. "P" More analysts said they approved. John Morris (John D. Morris), a senior retail analyst at BMO Capital Markets, wrote in a recent report: "Lewis takes the rich experience of operating international companies to the position of CEO, which we think is crucial for the future of Montreal." < /p >
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< p > < --EndFragment-- > from the present point of view, the performance of the international market is good and bad. The company reported that its sales volume declined slightly in recent quarter, mainly due to the weakness of the yen. International business revenue was 365 million US dollars, accounting for 32% of total revenue. If the exchange rate is fixed, part of international business revenue will grow by 9%. This has benefited from the two digit growth of same store sales in China. The company plans to open 30 new stores in China in the current fiscal year, bringing the total number of stores to 156. The company expects sales in China to reach US $530 million in the current fiscal year, accounting for about 10% of the total sales. Sales in the fiscal year ended 2013 June amounted to $430 million. < /p >
One of the key figures Lewis will rely on during the handover is p Loewe, a creative director of Loewe, a retail retailer in Spain. (Stuart Vevers) Not long ago, Venus was hired as the creative director to replace Reid Krakoff, a long-time designer of Reed Krakoff. Kakoff and a group of investors resigned this summer after buying the brand of Reed crakoff from Cox. Maurice, a bank capital market company in Montreal, thinks this is a good thing. He explained that he would put all his energy into the company. "We think that kakoff is walking between the brand of the same name and the brand of the brand in the strict sense", which is harmful to the development of new products. < /p >
< p > Frank, Ford and Lewis admitted in an interview that the most striking thing is that Michael Kors has achieved a 25% growth in same store sales driven by its avant-garde handbag and sexy black army skirt. Meanwhile, sales in recent quarters have been flat or even declining. < /p >
Vives's design will not be listed until next autumn, but the new product that will be on the shelves in spring and has a preview of it has already shown its hope of breaking away from some existing styles. To tell you the truth, these current styles don't look very fresh. For example, the upcoming handbags will be replaced by desalination of logo and clever use of textured ostrich skin and other materials. For example, Lewis's special lychee leather bag "Borough" sells for $548, sells well, and has large sizes, mini sizes and so on. The new version will be equipped with an elegant striped leather. < /p >
< p > > a href= "//www.sjfzxm.com/pioneer/" > Lewis < /a > plan continues to focus on the factory direct shop. But some critics complain that selling large quantities to direct stores affects brand characteristics. Cox is expanding its plant area and doing so is well founded. According to analysts, 193 Direct stores accounted for 60% of the sales of North America, and the profit margin was very high. Rents are cheap, and the materials used by these companies are not as expensive as those used in core products. < /p >
< p > all of this makes Ariel Investments Ariel satisfied. Earlier this year, it bought its shares at around $45, hoping that the retailer will regain its magic in the next three to five years. In the more recent 2015 fiscal year, Ariel investment company believes that the company is expected to make a profit of $4 a share. The company analyst Jamil Soriano (Jamil Soriano) multiplied this by 18 times the average price earnings ratio of 10 years, and reached a valuation of $72, 30% higher than the current price. This price is still lower than last year's US $77. Ariel owns about 1 million shares of the company. Soriano said this is a good opportunity to bet on a reliable brand facing temporary difficulties. "I think they have a solid plan," he said. < /p >
< p > the elder CEO < a href= "//www.sjfzxm.com/pioneer/" > Lou Frank Ford < /a > will hand over the handsome print to Victor Luis in January. Part of the plan may be to reduce expectations so that new management can reach them. As the handbag business was sluggish and store traffic decreased, its business in the first quarter was not as good as expected, and the same store sales in North America dropped by 7%. After that, Cox downgraded its expected performance in the current fiscal year. It is expected that the same store sales growth rate will drop to nearly 10%, and the total sales growth rate will drop to less than 5%. With 351 retail outlets, the company still intends to expand its global storefront area by 9%, and open 20 new stores in North America. Analysts now expect the retailer to make a profit of $973 million in fiscal year 2014, or $3.48 a share, down from last year's $3.73. Sales revenue is expected to be $5 billion 100 million, roughly flat. < /p >
Last year, P generated free cash flow of $1 billion 200 million. There are few debts on the balance sheet and 854 million dollars in cash and cash equivalents. < /p >
Less than P, the company has been very aggressive in its return to shareholders. The dividend payout has been raised four times since the first dividend was launched in 2010. Its dividend yield is 2.4%. Over the past five and a half years, it has reduced the number of tradable shares by more than 25% by repurchase. < /p >
Less than P, except for the lively and lively stylus bag, buying a few shares of coke may also be a good gift. It is wise to bet that Lewis will lead the company to regain the favor of consumers and investors. < /p >