Tapestry, the group that owns the portfolios of Coach, Kate Spade, and Stuart Weitzman, issued a revision to its annual sales projection on Thursday, with analysts citing a downturn in demand for its handbags and footwear across the United States.
Even though Tapestry’s first-quarter revenue increased by 6% as compared to 2022, the company’s net sales of $1.51 billion fell short of analysts’ projections. The result led to a reduction in the company’s yearly projection. After the news, Coach’s stock allegedly fell 1.7%, adding to the company’s 30% annual loss, according to Reuters.
Amidst these monetary changes, Tapestry is presently in the process of purchasing Versace’s parent company, Capri Holdings; this transaction is expected to be completed in 2024.
Joanne Crevoiserat, CEO of Tapestry, said in a statement, “We achieved record first-quarter revenue and EPS as we continued to successfully advance our strategic growth agenda against a dynamic external backdrop.”
Tapestry is struggling with the way its “accessible luxury” products—which include shoulder bags, clothes, and shoes—sell. Consumer budgets have been strained as a result of this sector’s struggles with ongoing inflation and rising borrowing prices in the US.
