One of the symptoms of Tapestry’s struggles is its performance n Wall Street, where the group has lost 56%. And so, Tapestry plans to lay-off additional people, writes WWD, basing the assumption on an internal document it received. All on the eve of the posting of its financial results (with the fiscal year closing on June 27th), which should reflect the severe difficulties of the last quarter (April – June). According to the forecasts, the group should have recorded revenue of up to 1 billion less than the previous year.
Tapestry plans to lay-off additional people
Tapestry, owner of Coach, kate Spade and Stuart Weitzman, announced back in late April that it planned to reduce its workforce in North America Starting April 25th, about 2,100 people working part-time in stores had been suspended. Additionally, the board voted to reduce managers’ compensation. This appears not to have been enough. According to what reported by WWD, a company’s spokesperson wrote in an email that “the company has taken further steps to rationalize its organization, including significantly cutting global workforce, including retail operators, in the months of May and June”. The decision would be in line with what announced by the company during a conference call with analysts on April 30th. Taestry’s executives had expressed the intention of continuing taking steps that would limit losses. The organization hasn’t yet confirmed the dates of the alleged layoffs, nor the number of employees that would be let go.
Tapestry’s stock price decreased by 56% YTD. The group was also part of discussions on Forbes, which hasn’t helped the outlook. According to analysts, Tapestry is in a relatively good position, compared to its direct competitors, to face the crisis caused by Covid-19. “Tapestry can achieve a profit result if revenue doesn’t decrease by more than 1/3”, says Forbes. But, at least for now, the market hasn’t rewarded the efforts made by the company to stay alive during the pandemic, the same time during which the group was undergoing a deep organizational transformation.
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