Tapestry, the American luxury fashion firm, which owns retail bigwigs like Kate Spade and Coach, has seen its second quarter sales slide by 7 per cent.
Though the firm has not provided any update for the current year, it is optimistic of seeing a strong consumer demand in 2021.
The revenue earned during the said quarter was US $ 1.69 billion, which was better than US $ 1.63 billion that analysts had predicted.
While the net income increased by 4.1 per cent to clock US $ 311 million, the year-over-year net sales slumped by 7 per cent.
Brand wise too, sales have fallen sharply. Kate Spade saw its sales drop by 13 per cent, while Stuart Weitzmann’s sales fell by 27 per cent. Also, sales of Coach plummeted by 4 per cent.
The silver lining in the cloud, as it’s been with many retailers, was the triple digit growth in Tapestry’s e-commerce business.
Notably, the digital sales constituted nearly 1/3 of company’s worldwide sales and around half of the revenue in North America.
Going forward, Tapestry hopes the full-year revenue to rise in high single digits on a 52-week basis and about 10 per cent on a 53-week basis. Not too many details about its outlook were disclosed by the firm.
The New York-based Tapestry generated US $ 5.88 billion in 2018.
Also Read: Tapestry sees 53% fall in net sales; e-commerce is the saving grace
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