Tapestry posts net loss of US$294 million

Worldwide
Published:  14 August, 2020
Stuart Weitzman's McKenzee range

The net loss for the New York headquartered fashion Group in the fiscal fourth quarter ending June 27, 2020, was US$294 million on a reported basis, with net sales for the Coach brand nearly halving over the period.

Tapestry’s net sales totalled US$715 million for its fiscal fourth quarter, down from US$1.51 billion in the prior year. Gross profit amounted to US$499 million on a reported basis in the period, while gross margin for the quarter was 69.8% compared with US$999 million and 66%, respectively, in the prior year. Operating loss was approximately US$280 million on a reported basis, while operating margin was -39.2%, compared with an operating income of US$171 million and an operating margin of 11.3% in the same quarter of the previous fiscal year. Net loss for the quarter amounted to US$294 million on a reported basis, compared with a net income of US$149 million in the previous comparative period.

Worldwide net sales for the Coach brand totalled approximately US$517 million for the fiscal fourth quarter compared with US$1.10 billion in the prior year. Net sales for Kate Spade totalled US$164 million, down from US$332 million, and net sales for the Stuart Weitzman brand amounted to US$33 million for the fiscal fourth quarter compared with US$85 million in the same period of the prior year.

For its full fiscal year 2020, Tapestry’s net sales totalled US$4.96 billion, down from US$6.03 billion in the previous fiscal year. Gross profit was US$3.24 billion and gross margin 65.3% compared with US$4.05 billion and 67.3%, respectively, in the prior year. Operating loss totalled US$551 million on a reported basis in the year, while operating margin was -11.1% compared with an operating income of US$820 million and an operating margin of 13.6% a year ago. Net loss for the year was US$652 million against a net income of US$643 million in the previous fiscal year.

Full year net sales for Coach totalled US$3.53 billion, down from US$4.27 billion in the previous year, while net sales for the Kate Spade brand totalled US$1.15 billion (2019: US$1.37 billion) and Stuart Weitzman recorded sales of US$286 million compared with US$389 million in the same period of the fiscal year 2019.

 

Credit: Stuart Weitzman