Coach is teaming up with Selena Gomez to gain access to her 108 million Instagram followers
(Selena GomezKevin Winter/Getty)
Coach plans to use social media to boost its brand in 2017. On its second quarter earnings call, the company announced it is partnering with pop star Selena Gomez.
"Of course, signing Selena Gomez as the new face of Coach will amplify the Coach message given her very substantial global following, especially on social media," according to Coach CEO Victor Luis in the transcript.
Gomez has 108 million followers on Instagram, and Coach is hoping the collaboration will help boost its social media presence as well as attract the millennial consumer.
Establishing a relationship with Gomez is just part of the company's plan go win back its premium-brand status. Coach recently pulled out of more than 250 department stores and has been striving to elevate its brand image by revamping stories, offering personalized products and focusing on in-store customer experience. Coach also expects Stuart Weitzman's sales to increase at a double-digit pace this fiscal year.
As for earnings, the company earned $0.75 per share on revenue of $1.32 billion in the second quarter, both ahead of estimates. Coach said quarterly profit jumped 17.4% as it limited promotions in the United States while selling more handbags in China and Japan.
The company's net income rose to $199.7 million, or 71 cents per share, in the second quarter ended Dec. 31 from $170.1 million, or 61 cents per share, a year earlier. Net sales rose to $1.32 billion from $1.27 billion, in line with analysts' average estimate.
Additionally, Luiz announced the appointment of Kevin Wills as Chief Financial Officer and Carlos Becil as Chief Marketing Officer.
The stock is up 3.17% at $37.12 a share in light of the earnings news.
(Markets Insider)
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