The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Tapestry Inc, formerly Coach, posted weaker-than-expected quarterly sales, hurt by a surprise drop in comparable sales in its legacy unit.
Same-store sales at Coach — the company's biggest unit — fell 2 percent, while analysts had expected a 2 percent rise, according to research firm Consensus Metrix.
Tapestry, which houses the Coach, Kate Spade and Stuart Weitzman brands, said sales were hit by inventory issues and hurricanes in North America and typhoons in Asia.
The company posted net loss of $17.7 million, or 6 cents per share, in the quarter ended Sept. 30, compared with a profit of $117.4 million, or 42 cents per share, a year earlier.
ADVERTISEMENT
Tapestry took a $188 million charge related to its acquisition of Kate Spade.
Excluding one-time items, the company earned 42 cents, beating analysts' average estimate of 36 cents, according to Thomson Reuters I/B/E/S.
Net revenue rose 24.2 percent to $1.29 billion,while analysts on average had expected $1.31 billion.
By Gayathree Ganesan; editor: Saumyadeb Chakrabarty.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.