Behind the bright financial results of the quarter, many factors were also revealed. On December 22, 2017, Trump signed the largest tax cut in the United States since 1986. The US federal income tax rate will be reduced from the current 35% to 21%. Coach Parent estimates its 2018 fiscal revenue accordingly. The annual tax rate will be reduced by about 5%.
At the same time, in the second quarter of 2018, during the Double Festivals of Christmas and New Year, the United States ushered in the traditional holiday shopping boom, many retailers have launched promotional activities, during which the growth of consumption can naturally contrast with the flat of the previous quarter. .
Turned over the previous quarter’s financial report, when Coach was still in the doldrums. For the first quarter ended September 30, Coach sales fell 3% year-over-year to US$924 million, global same-store sales fell 2%, and operating profit was US$198 million. At that time, the Group also attributed the decline in Coach sales to external reasons such as North American hurricanes.
Group CEO Victor Luis once said bluntly: “If you listen to our conference call in recent quarters, you will definitely notice the frequent occurrence of the word ‘unpredictable’.” External factors cannot be evaded, Coach’s future seems to be full of Certainty.