Lower Kate Spade sales impact Tapestry first-quarter results

Worldwide
Published:  05 November, 2019
Kate Spade New York

First-quarter fiscal 2020 results for the premium lifestyle fashion Group were impacted by a decline in sales of the Kate Spade brand.

Tapestry’s net sales fell to US$1.36 billion in the first quarter of the Group’s fiscal 2020, ended September 28, 2019, from US$1.38 billion a year earlier; general analysts’ expectations were of US$1.37 billion. “Kate Spade’s comparable store sales declined in line with expectations, reflecting the product and merchandising challenges we’ve previously identified, while Stuart Weitzman sales were negatively impacted by softer wholesale demand and continued operational challenges”, said Jide Zeitlin, Chairman and CEO, Tapestry. Net income declined to US$20 million from US$122.3 million in the same quarter of the previous fiscal year.

The Coach brand is said to have delivered its eighth consecutive quarter of positive comparable store sales growth, led by digital and international channels. According to Zeitlin, the first quarter revenue was consistent with the Group’s expectations. “Our business internationally was stronger than in North America where we managed continued industry headwinds. Further, adjusted operating income and earnings per diluted share were better than forecast, including favourable expense timing”, he said.