Our international wholesale business declined as expected

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moncler outlet canada Sign in / Join NowGood day, and welcome to the Tapestry’s Conference Call. All lines have been placed in a listen only mode until the question and answer portion of the program. [Operator Instructions] Today’s call is being recorded.At this time, for opening remarks and introductions, I would like to turn the call over to Andrea Resnick, Global Head of Investor Relations and Corporate Communications.Good morning and thank you for joining us. With me today to discuss our quarterly results and annual forecast are Victor Luis, Tapestry, Inc.’s Chief Executive Officer; and Kevin Wills, Tapestry CFO.Before we begin, we must point out that this conference call will involve certain forward looking statements, including projections for our business in the current or future quarters or fiscal years. These moncler outlet statements are based upon a number of continuing assumptions. Future results may differ materially from our current expectations based upon a number of important factors, including https://www.mymoncleroutlet.com risks and uncertainties such as our ability to achieve intended benefits, cost savings and synergies from acquisitions; expected economic trends or moncler outlet online our ability to anticipate consumer preferences, control moncler outlet sale costs, successfully execute our operational efficiency initiatives and growth strategies. Please refer to our latest annual report on Form 10 K and our other filings with the Securities and Exchange Commission for a complete list of risks and important factors. Please note that historical trends may not be indicative of future performance.Also, certain financial information and metrics that will be discussed today will be presented on a non GAAP basis. These non GAAP measures exclude certain items related to our operational efficiency plan and integration and acquisition related charges, as well as the impact of uk moncler sale foreign currency fluctuations where noted.You may identify these non GAAP measures by the terms non GAAP or constant currency. The Company believes that presenting these non GAAP measures is a useful way moncler usa for investors and others to evaluate the Company’s ongoing operations and financial results against historical performance, and in a manner that is consistent with management’s evaluation of the business.Now, let me outline the speakers and topics for this conference call. Victor Luis will provide an overall summary of our first fiscal quarter 2018 results for our three brands. Kevin Wills will continue with details on financial and operational results, and our outlook for the balance of FY18. Following that we will hold a question and answer session where we will be joined by Todd Kahn, President, Chief Administrative Officer and Secretary; and Josh Schulman, Chief Executive Officer and Brand President of Coach. We will then conclude with some brief summary remarks.I’d now like to introduce Victor Luis, Tapestry’s CEO.Good morning. Thank you, Andrea, and welcome, everyone to our first call as Tapestry. In changing our name, we’re establishing a strong and best moncler jackets distinct corporate identity which enables our brands to express their individual personalities and unique language to consumers, therefore eliminating confusion between Coach, Inc. and the Coach brand. We searched for a name to reflect the shared values of optimism, innovation and inclusion that all three of our brands share, while also expressing the diversity of our people and our brands. Our new corporate identity embodies our creative, brand led, and consumer focused business, while also representing the heritage of our group.Now, turning to our results. As noted in our press release this morning, our first quarter performance was in line with our overall expectations, which as Kevin mentioned on our last call, would be impacted by calendar shifts and currency. Our results clearly reflected the benefits of our diversified multi brand model, notably the contribution of Kate Spade to our consolidated results, and double digit growth at moncler sale Stuart Weitzman.While we were not satisfied with Coach’s global comp store sales performance, which was impacted by both, the expected calendar shifts and inventory mix challenges as well as the effects of the unanticipated natural disasters, we have returned to global and North America comp growth in the second quarter and our well positioned for holiday. Importantly, we remain on track to achieve the annual guidance we cheap moncler jackets womens set out for Tapestry in August.We have been especially pleased with the progress of the integration of Kate Spade, on to our operating platform. During the quarter, we took significant actions to position the brand for long term success. We began to implement our strategic initiatives including the pull back on wholesale, disposition and flash sales, while taking substantial steps to unlock cost synergies. After only a few months post close of moncler outlet store the Kate Spade acquisition, we are even more excited about the opportunities for the brand, both in terms of revenue growth driven by distribution expansion and moncler sale online productivity, cheap moncler jackets and profitability uk moncler outlet improvements as we leverage our scale across our supply chain and corporate functions.We are also optimistic about growth opportunities as we leverage our global business development organization across moncler outlet prices all brands and geographies. Importantly, we now expect to achieve moncler online store run rate synergies of approximately $100 million to $115 million in fiscal 2019 versus our previous guidance of $50 million.Today, the three brands of the Tapestry family are united in a common philosophy. First, driven by brand led strategies that focus on the consumer and on an inclusive approach to luxury; second, a focus on innovation across product, marketing and experiences both in our stores and in our digital channels; and lastly, the objectives to drive sustainable revenue and earnings growth through strategies that are focused on long term brand health. Our strategic priority is to achieve this balance by making the appropriate investments while carefully managing our distribution channels to optimize growth.As we look forward to the balance of FY18, our strategies of Tapestry are focused on creating and operating platform that powers our multi brand company; writing the next chapter in the Coach story; building upon our history and heritage of craftsmanship and fashion relevance across product categories, channels and geographies; establishing a healthy foundation to support Kate Spade’s global growth; launching the new creative direction for Stuart Weitzman, moncler uk outlet while maintaining the brand’s leadership position in the fusion of fashion and fit; and driving innovation and ecommerce and digital marketing, as well as materials and supply chain while leveraging Tapestry’s scale across brands.Overall, we remain focused on creating desire for our brands in re enforcing the moncler outlet woodbury emotional bonds with our customers across geographies. We are confident in the opportunities for Tapestry as a whole and for each of our brands individually within the attractive and growing $80 billion global market for premium handbags and accessories, footwear and outerwear.Moving to category trends and giving our new reporting structure. We are moving to a global category update. During the first quarter, we estimate that the men’s and women’s premium handbag and accessories market which is over $40 billion grew at high single digit rate globally, accelerating from the June quarter, driven by the strength of luxury logo products, proving that brands absolutely still matter. department store space as some brands have pulled back from the channel.Now, turning to results by brand. I’d like to focus on first quarter performance and the holiday outlook for the Coach brand, where we remain focused on elevating brand perception, driving fashion relevance, and ensuring balance across moncler sale outlet our product offering in both price points and materials.Overall, for the first quarter, Coach sales declined 3% as reported and 2% in constant currency. dollar. The brand’s international constant currency sales growth was driven by increases in Europe, Greater China, and Japan.During the quarter, our global Coach comp declined 2% with our North America comp down similarly. Europe and Mainland China continued to generate positive cheap moncler coats mens comps while our overall comp store sales in Greater China were down as expected, given both the holiday shift and continued weakness in Hong Kong and Macau. The balance of our direct Asia business continued to be negatively impacted by the ongoing issues in Korea with both domestic macroeconomic malaise and weak tourist flows.As I mentioned, there were a number of both anticipated and unexpected impacts on global results during the quarter. These included the movement of the Mid Autumn Festival which reduced Chinese tourist flows and their spend during the quarter and some inventory mix opportunities, stock outs and storages of certain products, notably logo in the North America outlet channel. There were also the negative effects of hurricanes and typhoons in North America and Asia, respectively. In addition to direct impact on sales from these disasters, we also experienced disruption to our Jacksonville, Florida distribution center, both receiving shipment into the facility as well sending inventory out the stores. However, cheap moncler sale our rebound moncler womens jackets quarter to date underscores our confidence in Coach’s continued transformation and brand momentum as well as our ability to deliver a strong holiday season.Moving to wholesale. Our North America shipments grew during the quarter driven by footwear. As expected, our sales at POS declined due Moncler Outlet to the rap impact of spring 2017 door closures. However, we were pleased to have positive year on year performance in comp doors within our largest accounts. Our results are especially strong in those doors discount moncler jackets which have been renovated into the modern luxury concept. Our international wholesale business declined as expected, due in part to shipment timing with ships in both the fourth quarter of 2017 and the second quarter of fiscal 2018, while sales at POS rose, driven by door growth.Turning to Coach product performance and starting with retail. We continue to see strong consumer response to fashion innovation. Most exciting in the quarter was the launch of the Coach and Selena Gomez collaboration, a new collection designed in partnership with the multitalented actress and singer. This launch was supported by our fall advertising campaign, featuring Selena wearing the Selena Grace bag and Red which has virtually sold out across our network.What was a specially exciting was the increase in our North America retail customer database, in part reflecting our strategy to leverage the Selena collaboration to cut cheap moncler jackets mens through to a broader audience. This was also evidenced in our brand tracking where among the broad premium market, women who believe wearing Coach handbags make them feel fashionable and put together, rose versus a year ago, while Coach also leads in being viewed as high quality. Importantly, among category drivers, perception of the brand’s ubiquity fell year over year.As we entered Q2, we launched Coach Create, globally, a platform for customers to customize her bags either online or in store. In 35 stores worldwide as well as online, we have the most complete expression of Coach Create which allows customers to customize bags with signature details such as embossed leather Tea Roses or Prairie Rivets. This customization is done in store while the customer shops. And in over 25% of our direct fleet worldwide, we now have standalone monogramming stations moncler outlet canada.