Tapestry speeds up in the half-year period. Coach goes well, Weitzman keeps growing, Spade slows down less than expected

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Coach’s bags sales go up again. Likewise, Stuart Weitzman’s footwear keeps growing. And Kate Spade’s accessories slow down less than expected. Hence Tapestry, the new company name of former Coach Group, speeds up in the half-year period, as their revenues go beyond 3 billion dollars, thus increasing by 30 per cent. Earnings coming from Kate Spade, the group’s latest buyout, have been remarkably contributing to such business expansion. Net profits reach 1,78 billion dollars (1,44 billion euros), going up by 35 per cent. By all means the Coach brand keeps fostering the group’s sales: in the first six months of the year, overall revenues amounted to 2,153.3 million dollars (1,731.7 million euros). In the last quarter comparable sales increased by 3 per cent (analysts had forecast +1,83 per cent). As for Kate Spade, overall incomes reached 703,5 million dollars (565,7 million euros): sales dropped by 7 per cent, less than forecast by analysts (-8,8 per cent) though. Finally, Stuart Weitzman: overall earnings coming from sales amounted to 217,1 million dollars (174,6 million euros), thus increasing by 2 per cent. Victor Luis, CEO of Tapestry, pointed out: “In the second quarter our performance was considerably good, definitely beyond expectations, driven by Stuart Weitzman sales, Coach positive trend, once again, and Kate Spade integration”. Tapestry’s prospective profits are due to go up throughout the year. According to most analysts, Tapestry’s success hangs on their ability to turn themselves into a multi-brand group: they have made their stock provisions more profitable and have reduced sales promotions.

 

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