2013年10月13日星期日
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ties record?Paula deen exodushomelessness the mentally illexpensive watches are
a fashion statement and a great accessory for anyone.However, who can actually
think of spending too much on such a luxury item when consumers, especially the
lower income group, have become calculative about each penny spent.Tough times
for luxury retailers were very much evident in the recent results of some of the
industry players such as coach and tiffany, who are finding it difficult to ward
off the pressure of low demand for their high end products. In spite of various
efforts made, such as new product launches and expansion into new markets,
coach's recent quarter fell flat mainly because of a weak holiday season and
customers' budget consciousness.Economic weakness has led to poor returns to
coach's investors.Even tiffany did not experience much growth in the recent
holiday season.In spite of more number of stores, revenue growth was below
expectations.Due to unwillingness of customers to buy expensive jewelry tiffany
witnessed decline in same store sales growth. However, fossil stands out as an
amazing exception to this trend.The luxury watch maker posted a rocking quarter
which had the street ticking, providing hope to investors about the longterm.
Key driver of the watch maker's performance was the buyout of skagen.The
acquisition benefitted the company in all the regions, especially in
europe.Europe's revenue, which constitutes onethird of fossil's universe, grew
7.6% which is in sharp contrast to previous quarter's decline in sales from the
region.This highlights the importance of fossil's efforts and the skagen's
contribution to the same. Michael kors, a branded apparel and accessory
retailer, has played a crucial role in fossil's success.Michael kors, since its
ipo in december 2011, has been rocking the street with exemplary
performance.Kors' amazing products are loved by people and watches are no
exception.Since fossil makes watches for kors, the former has been able to
garner huge benefits.This advantage is definitely unique to fossil since its
competitors such as coach and tiffany doesn't have such arrangements with a
growing company like kors. The star performing segments during the quarter were
direct to customer segment and the jewelry segment which performed extremely
well.Strategic efforts for both the ecommerce sales and the jewelry sales paid
off since it performed extremely well.Moreover, new stores opened and
repositioning of the jewelry segment worked well for the watch maker. Fossil
looks increasingly attractive with a golden future ahead.It has been expanding
its footprint worldwide.Its plans of further expanding in asia and europe look
quite lucrative.This is mainly because of the growth numbers seen this quarter.
Additionally, it has been expanding its product portfolio also.It now not only
sells watches, but also various other branded products which might help the
company grow further.In fact, not only its own growth but also michael kors'
growth will add to the success of the company. Lastly, fossil's various
acquisition and partnership agreements look quite interesting.After the success
of skagen, the retailer acquired distribution rights of bentrani watches llc
will help it in expanding its footprint in latin america.Also, its recent
partnerships with brands such as karl lagerfeld and tory burch make the future
brighter.
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