What Is The Breakdown Of The Charges Associated With Coach’s Transformation Plan?

March 11th, 2016 by Trefis Team
COH: Coach logo
COH
Coach

During the fourth quarter of fiscal year ended June 28, 2014 (Fiscal 2014), Coach announced a multi-year strategic plan to transform the brand and reinvigorate growth. This will continue till the end of Fiscal 2016, and includes:

  • Investment in capital improvement in stores and wholesale locations
  • Optimization and streamlining of the organizational model, and closure of underperforming stores in North America and select International stores
  • Realignment of inventory levels and mix to reflect the company’s elevated product strategy and consumer preferences
  • Investment in incremental advertising costs to elevate consumer perception
  • Significant scale-back of promotional activities.

As of December 26, 2015, Coach expects to incur aggregate pre-tax charges of ~$325 million, while the charges up till December 26, 2015 were $303.9 million.

Screen Shot 2016-03-11 at 6.52.04 pm

Relevant Articles
  1. Rising 21% This Year, What Lies Ahead For Exxon Stock Following Q1 Earnings?
  2. Should You Pick General Electric Stock At $165?
  3. What’s Next For JetBlue Stock After A Sharp 19% Fall Post Q1 Results?
  4. Is Kimberly-Clark Stock Fairly Valued At $135 After A Solid Q1?
  5. How Will AMD’s AI Business Fare In Q1?
  6. Up 9% Year To Date, Will Chevron’s Gains Continue Following Q1 Results?

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Coach.
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research