TPR
#Sure.
It's really about the three pillars that we've been talking about for the past few quarters coming together, so product, marketing obviously, and distribution.
In terms of product, as I mentioned earlier we have filled gaps in the below-$300 bucket, which I think were an opportunity last holiday season.
So a lot more in both channels, frankly, retail and outlet ---+ a lot more of an offering in the below-$300 bracket.
We've also added, I think, a lot more emotion and elevation at the same time in our stores.
A big focus on gifting.
I mentioned shearling, metallics, glitter, et cetera in full price and outlets.
The other thing in outlets is we had a gap, we know an opportunity last year in gift sets below $100.
We tripled our investment in that area.
I think we're positioned much better in terms of product, certainly, than we were a year ago.
We're also building on the momentum of all the marketing activities that started with the runway show.
That continues to gather momentum.
Obviously, we're continuing to see strength in our modern luxury renovations.
We think the three pillars are going to be slowly coming together this quarter.
Also, I should note that we've seen the momentum that we saw in Q1 has continued into October, so that we think bodes well for the holiday.
Sure.
We think the conversion is the metric that's going to be improving the most.
We've maintained positive ADTs.
We see that continuing.
The conversion is the metric that we're expecting to improve sequentially in both channels the most.
We've seen on the added front, first in product an increasing share of Stuart-designed product, and that's been impacting performance, obviously.
The modern luxury renovations that we've completed so far have been out-performing the rest of the chain, so that's given us confidence to continue to deploy that plan.
The one learning I'd say is in the men's renovations, men's Modern Luxury renovations and outlet, where we've seen less of an impact, candidly.
I think that comes from the fact that the men's doors are more recent doors.
The Modern Luxury doesn't look as different as it does from the core door.
Our focus is going to be more on our core outlet doors in terms of renovations.
<UNK>, we talked about it last quarter, but one of the learnings that we did call out last quarter was that our lighter-touch renovations were not yielding the improvement that we had expected.
We've moved away from essentially the paint and carpet, if you will, to actually doing a little heavier renovation, which gets us the lift as we replace fixturing.
The good news is that our overall cost of renovations through bulk purchasing and procurement activities has gone down, so we're able to accommodate that shift while lowering our total capital cost expectations for our fleet renovations.
Very much so, <UNK>, and I would say globally.
The logo penetration has dropped in outlet.
It's at about 30% now versus roughly 40% a year ago.
It's an integral part of the business.
It's obviously become smaller than it was a few years and quarters ago.
We see that continuing to decline slowly, while leather has been comping positive in outlets.
That's something that I think is very consistent with Coach's core equities.
We stand ready for leather.
The wholesale question I may let <UNK> answer.
I didn't get the question.
No, not dramatically.
Of course we're seeing a slightly higher promotional cadence within the wholesale channel in general, a little bit more price competition, which is leading to the below-$300 bucket having a higher penetration overall.
But in general I would say no really dramatic differences.
Good morning, <UNK>.
I'll take the first question and then pass on to <UNK> in terms of the store closings here, specifically in North America, <UNK>.
In terms of the consumer survey, it's very much as you mentioned.
We see consumers a little bit on the sidelines.
Obviously there's a lot of macro and currency and other issues that are impacting global trends today.
As we've mentioned over the last call ---+ and again, I think are seeing in our most recent quarterly survey, consumers are looking to be inspired, and they're looking for newness and innovation.
Our transformation is very focused on that.
We're incredibly excited, of course, by the progress that we're seeing, especially through our full-price channels.
<UNK>, maybe on the ---+
Sure.
We've seen very minimal transfer of sales from closed doors.
The doors we closed are primarily smaller doors that had limited material impact on the rest of the chain.
Look, we'll continue to valuate and optimize our fleet as leases come up.
We'll make decisions on continuing on closures, so that's an ongoing process.
We are closing about 22 doors this year, as <UNK> mentioned, so that's in the plans.
Thank you, <UNK>.
I would say we haven't seen any change from the previous quarter to this quarter in any one of those areas ---+ very consistent, really.
PRCs continued along the same lines as we saw last quarter, and I would say that in the department stores very consistent, as well.
Thank you.
Thank you all for listening.
I just want to close by thanking and congratulating our Coach teams globally.
Thanks to their hard work, their perseverance, and of course their excellence in execution.
Our transformation remains very much on plan.
We're pleased with the progress that we're seeing here in North America.
Of course with the sequential improvement in our business, which has been led as we have always expected by our full-price channel, where we have put the greatest investment and focus.
In what is a rather turbulent global environment for the category, our balanced and strong franchise in Asia, as well as our greenfield opportunity in Europe is serving us well.
Lastly, I'm excited by the emerging trends that we've seen at the Stuart Weitzman brand ---+ not only thanks to the very strong product foundation that they have, but also thanks to the very strong and growing momentum that we're seeing with them in Asia.
All bodes well for us for the rest of the fiscal year.
Thank you.
