How Will Coach Perform In 2016?

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COH
Coach

Coach has performed well in the January-March quarter, with a turnaround being witnessed in its North American segment, and strong growth seen in its International segment. In North America, the same-store sales at the retail stores were unchanged, after a number of quarters of negative comps, representing the fourth consecutive quarter of improvement, and low single digit growth was seen in the North American premium women’s handbag and accessories market. International sales were driven by double-digit growth in mainland China, and increased spending by Chinese tourists in Japan, Korea, and Southeast Asia. Coach’s collaboration with Disney is also expected to boost the company’s top line, as evidenced by the success of the Coach X Peanuts collection in the third quarter of the company, ended March 2016. On the basis of all this, we expect the revenue to grow by 8.5%, and EBITDA to increase by 17%.

Coach 2016-1 Coach 2016-2 Coach 2016-3

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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.
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