Tapestry financial statements over the third quarter of the year got in the red. In fact, the US group’s revenues have been dropping by 19.4%, slightly below analysts’ expectations. Yet, loss turned out to be much more considerable. The holding company, which is in control over Coach, Kate Spade and Stuart Weitzmann brands, has not provided any forecast about the current business year.
Tapestry third quarter in the red
The pandemic, caused by Coronavirus, has been remarkably affecting Tapestry profitability then. In the period, ended on 28th March 2020, the group lost, in terms of earnings from sales, 677.1 million dollars. For the records, last year profits amounted to 117.4 million dollars. As regards quarterly sales, they have been decreasing by 19.4% (that is, 1.073 billion dollars), slightly below expectations, which were about 1.08 billion dollars. Let us focus on the brands: Coach down by 20%, better than predicted by analysts anyway, Kate Spade down by 11%, while Stuart Weitzmann went down by 40%. “Since digital business is smaller, compared to revenues from sales in real stores – pointed out the group in a press release – online sales, which have been enjoying a remarkable boost, could not offset the overall downturn”.
The financial report over 9 months
In the last nine months, Tapestry sales have been decreasing by 6%: Coach down 5%, Kate Spade down 5% and Stuart Weitzmann down 16%. As regards the economic turnover, it proves to be in the red: -358.3 million dollars. “While focusing on our strong points, we are taking swift action – commented Jide Zeitlin, President and Chief Executive Officer – to adapt ourselves to the current scenario. Such is our aim: to safeguard our cash assets and enhance, at the same time, our financial flexibility. We are working faster on transformation key elements: in particular, we are striving hard to achieve an outstanding growth in the digital business and create a more simplified organization, based on data”.