China and online sales (as usual) are supporting Tapestry, whose performance in the first quarter of the year, despite its being rather complicated, went beyond financial analysts’ expectations. The company, which owns Coach, Kate Spade and Stuart Weitzman brands, keeps being optimistic then. Although they have not provided any data forecast, they expect that both revenues and profits will increase throughout 2021 business year (running from July 2020 until June 2021).
China and online
Tapestry has made public, today, the results achieved in the first financial quarter, closed on 26th September 2020. Net sales reached 1.17 billion dollars, therefore dropping by 14% compared to the same period of one year ago.
However, the group exceeded analysts’ average estimates, which amounted to 1.07 billion dollars, according to IBES data, supplied by Refinitiv and reported by Cnbc.
As for share adjusted income, it reached 58 cents, thus going beyond expectations, which were about 23 cents. Talking about brands, Coach earnings decreased by 9%, while Kate Spade revenues dropped by 21%; finally, Stuart Weitzman takings went down by 35%. Like we said earlier, the company still has not announced any outlook for the whole business year, which is bound to be affected by uncertainty caused by Coronavirus pandemic.
Yet, by reason of a few comforting signs (such as results in China and driven by online sales), Tapestry claimed they are confident that both revenues and profits will enjoy a boost.
The new Chief Executive Officer
Joanne Crevoiserat, who was appointed as new Chief Executive Officer on Tuesday, 27 October, is happy about results as well.
More precisely, the US group made permanent the position she had been formerly holding, ad interim, since July 2020, when the manager (in the picture, right) took over by replacing Jide Zeitlin. “After carrying out an extensive recruitment search, both internally and externally, the board of directors unanimously decided that Joanne was the best candidate”, commented in a press announcement Susan Kropf, president of the group’s governing body.
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