Kate Spade Is Not In The Tide.

In 2014,

Sales amounted to US $1 billion 200 million, an increase of 42% over 2013.

Kate Spade has just released its latest quarterly report, with sales of $255 million, a steady increase of 14%, but a net loss of $55 million 221 thousand.

There are two main reasons for the net loss. The agency in Greater China has been pferred from E-Land Korea clothing and love Group China company to Kate Spade&Co. and Lane Crawford Joyce Group subsidiary Walton Brown set up a joint venture, resulting in expenditure of US $26 million; closure of Kate Spade Saturday, and the cost of the company, the company and the company.

Affected by this, the gross profit margin of Kate Spade&Co. fell to 60.6% in the first quarter.

Analysts believe that the closure of Kate Spade Saturday and other shops so that the group can concentrate on the core of operation.

Avoid similar situations between Coach and Michael Kors.

Coach and Michael Kors are both too popular to lead to ambiguous brand positioning.

Kate Spade is worried about this problem. Its strategy is to ensure the uniqueness of the brand.

At yesterday's morning meeting, Kate Spade said it would reduce the sale of discount products on the e-commerce platform and the discount of department stores.

For retailers, it is very difficult to throw away the fat before eating. After all, discount sales can boost short-term sales.

But Kate Spade firmly believes that the discount of e-commerce and entity stores will dilute its brand value and guide consumers to buy their full price products.

In addition, Kate Spade is also controlling its low outlet store expansion.

"It's about brand image and brand awareness."

Kate Spade general manager Craig Leavitt told investors at the meeting.

To maintain its brand image, Michael Kors wants more people to buy its new product, such as the $298 leather bag.

Kate Spade has taken different strategies to lock in core customers but develop new product lines.

"They really know what to sell by" beating around the Bush ".

Nomura Securities International retail expert Simeon Siegel said.

In February, Kate Spade created the children's product line.

Kate Spade said the product line was performing well and is expected to open more stores this autumn, and is expected to open more babies.

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In addition, we also consider adding accessories and jewelry series to the wedding market, and home decoration products will also be included in the blueprint for 2015.