Hit By The Pandemic, Tapestry Bouncing Back With Online Sales

Tapestry, the holding company of Coach, Kate Spade and Stuart Weitzman, has confirmed that online sales have helped it bounce back after a massive downfall in sales after the pandemic. E commerce has helped them overcome a major threat indeed.

Tapestry sales fell down from a gigantic USD 1.5 billion to a platry USD 715 million in the last quarter of this fiscal year as per inouts from Refinitiv. The overall sales numbers for their brand Coach came down by 53% percent, Kate Spade fell 51% and Stuart Weitzman 61% in the quarter.

CFO of Tapestry, Andrea Shaw Resnick exuded confidence and stated that they are expecting definitive growth by the middle of year 2021, largely due to the profits generated by online deals and hopefully from their physical stores which would open up gradually.

The good amount of online sales helps Tapestry to gain a good space in comparison to its competition like Capri - Michael Kors, Versace, and Jimmy Choo. A strong client information framework, a deviation from advancements, reduction in stocks and a focussed approach on China through important entitities with Tmall has helped Tapestry immensely.

Jessica Ramirez who is a retail analyst at Jane Hali and Associates asserted that their actions are information driven and are being executed smartly. With more consumers pouring time and money on e commerce and online shopping, Tapestry has a strong plan to enhance profits for each luxury brand. Coach CEO Todd Kahn expressed that stores are "business ventures" and not a promotional exercise.

It is likely that physical stores might reduce to decrease the fixed overheads including rent. Stuart Weitzman, which witnessed the sharpest sales decline of the quarter, will close all stores in Europe, Japan, Australia and Malaysia to help enhance North American business and its "outsized" development in China, as expressed by CEO Giorgio Sarné.