Jide Zeitlin succeeds Victor Luis, who is leaving the Group. Zeitlin will continue in his role as Chairman. Tapestry also announced that Susan Kropf, a current member of the Tapestry Board, has been named Lead Independent Director. All appointments are effective immediately.
Tapestry said it is maintaining its fiscal 2020 financial outlook and continues to expect to return approximately US$700 million to shareholders through its dividend and repurchase programmes. During the fourth fiscal quarter, the Group commenced its share buyback program, repurchasing approximately 3.4 million shares of its common stock at an average cost of US$29.31 for a total of approximately US$100 million. Tapestry’s net sales totalled US$1.51 billion for its fourth fiscal quarter against US$1.48 billion in the prior year, +2% on a reported basis, while operating income amounted to US$170 million and operating margin was 11.2% versus US$187 million and an operating margin of 12.6% in the prior year. Net sales for Coach totalled US$1.10 billion (+2%) in the quarter, Kate Spade US$332 million (+6%), and Stuart Weitzman US$85 million (+17%).
For full fiscal 2019, Tapestry’s net sales totalled US$6.03 billion (+3%), with net income totalling US$643 million on a reported basis, and earnings per diluted share of US$2.21. Net sales for Coach totalled US$4.27 billion for the full year, up 2% on a constant currency basis, Kate Spade US$1.37 billion (+6% as reported), while Stuart Weitzman recorded a loss of US$51 million on a reported basis with an operating margin of 13.1%.