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.
Tapestry Inc on Thursday forecast full-year sales to rise more than analysts’ estimates, as the Coach handbag maker benefits from a strong rebound in demand for luxury goods in North America and China.
After a year of decline in sales, Tapestry, which also owns Kate Spade and Stuart Weitzman, reported a 19 percent rise in quarterly net sales as widespread vaccinations in the United States makes people more confident about spending on high-end goods.
The company’s net sales of $1.27 billion beat analysts’ average expectation of $1.22 billion, according to IBES data from Refinitiv. Sales in Mainland China rose about 175 percent.
Tapestry’s European peers including Louis Vuitton owner LVMH , Hermes and Kering’s Gucci last month signaled the comeback for the broader luxury goods industry as Covid-19 restrictions in major markets ease and people come back to stores.
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Tapestry forecast full-year sales to rise by a mid-teens percentage, compared with analysts’ average estimate of a 10 percent rise. It also forecast full-year earnings above 2019 levels.
By Uday Sampath; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty
Fashion brands are edging in on the world’s largest gathering of design professionals and their wealthy clients, but design companies still dominate the sector, which is ripe for further consolidation, reports Imran Amed.
Blocking the deal would set a new precedent for fashion M&A in the US and leave Capri Holdings in a precarious position as it attempts to turn around its Michael Kors brand.
After preserving his fashion empire’s independence for decades, the 89 year-old designer is taking a more open stance to M&A.
The sharp fall in the yen, combined with a number of premium brands not adjusting their prices to reflect the change, has created a rare opportunity to grab luxe goods at a discount.