Tapestry’s net sales halve in fiscal fourth quarter

Worldwide
Published:  19 October, 2020

Net sales for the U.S. headquartered fashion Group totalled US$715 million for its fiscal fourth quarter, compared with US$1.51 billion in the prior year.

On a reported basis, Tapestry’s gross profit totaled US$499 million for its fourth fiscal quarter, while gross margin was 69.8% compared with US$999 million and 66%, respectively, in the prior fiscal year. Net loss for the quarter was US$294 million on a reported basis, compared with a net income of US$149 million in the corresponding quarter of the previous year. For the full fiscal year 2020, Tapestry’s net sales totalled US$4.96 billion compared with US$6.03 billion in the fiscal 2019. Gross profit for the year amounted to US$3.24 billion on a reported basis, while gross margin was 65.3% compared with US$4.05 billion and 67.3%, respectively, in the prior year. Operating loss was US$551 million on a reported basis, and net loss amounted to US$652 million compared with a net income of US$643 million in fiscal year 2019.

Net sales for Coach brand totalled approximately US$517 million for the fiscal fourth quarter, down from US$1.10 billion in the prior year. Full year sales for the brand amounted to US$3.53 billion compared with US$4.27 billion in the prior year. Kate Spade net sales totalled US$164 million for the fiscal fourth quarter, down from US$332 million in the same quarter of the prior year, while full year net sales stood at US$1.15 billion compared with US$1.37 billion in full fiscal 2019. Stuart Weitzman'’s net sales in the fiscal fourth quarter of 2020 totalled US$33 million, down from US$85 million in the same period of the prior year. Full year net sales amounted to US$286 million, compared with US$389 million reported in the prior fiscal year.

Tapestry said it observed a continued strong e-commerce growth in the fourth quarter, with digital sales increasing triple digits versus prior year, and it returned to positive year-on-year sales growth in Mainland China during the quarter. “While the backdrop remains volatile, it has not changed our long-term objectives. Rather, it has been a catalyst to accelerate our strategic agenda”, said Joanne Crevoiserat, Interim Chief Executive Officer, Tapestry. “Through our Acceleration Programme, we are transforming into a world-class consumer centric organisation that is more agile and data-driven with a digital-first mindset. We believe these initiatives will create stronger connections with our customers, fueling accelerated growth and profitability for Tapestry and each of our brands.”

Credit: Kate Spade