Victor Luis, the chief executive of the group, said in a conference call after the report that the performance of Coach, Stuart Weitzman and Kate Spade contributed to the growth of the group’s total income, proving that the group is making progress in the integration of various brands of resources.
In the channel aspect, Coach and Kate Spade have realized the gradual decline of department stores, and began to reduce the volume of brand in department stores. Victor Luis pointed out that the proportion of wholesale sales, including department stores, in total group income has slowly narrowed, and revealed that the performance of Coach brand in North America has improved, and the growth of 3% in the second quarter.
Victor Luis revealed that the group has recovered the business rights of Kate Spade in mainland China, Hongkong, Macao and Taiwan, and Stuart Weitzman’s operations in the north of China, and these two measures will help the group to better control its brand.
In fact, the group had previously recovered the Coach brand management right by a similar local style, and bought a joint venture, ImagineX, in the Greater China area in 2008. Last year, the group also reclaimed the right to operate Coach brand in Australia and New Zealand.