Tapestry’s Q4 fiscal 2020 results are here!
Though the American fashion retailer saw its net sales for the quarter fall by 53 per cent to post US $ 714.8 million, it was still better than the Zacks Consensus estimate of US $ 691.1 million. However, last year, the fourth quarter net sale was US $ 1.51 billion.
Besides, the adjusted losses of 25 cents per share were also lower than the predicted loss of 48 cents per share.
The results are not as bad as expected and lot for this is attributed to its strong e-commerce performance. The online sales during the quarter rose in triple digits compared to what it was the previous year.
Here it is important to mention that in the fourth quarter, Tapestry added 1 million new e-commerce customers in North America alone – and, notably, most of them comprising youth.
Now that’s the silver lining for the fashion retailer! Getting massive number of young consumers is always an indication of a stable and secure future.
Substantiating on the same thoughts, Joanne Crevoiserat, Interim CEO, Tapestry, said “The changing landscape has not changed our priorities, but it has been a catalyst to accelerate them.”
Brand wise, sales of Coach and Kate Spade too slumped by 53 per cent and 51 per cent, respectively, during the quarter, but the gross margins improved for each of Tapestry’s brands.
Also, it intends to keep the margins sturdy by having lighter inventory levels in the future.
It’s been a tough quarter for Tapestry, but with good jump in digital sales, gross margins and slow and steady improvement in mainland China and North America, what Tapestry needs is some good initiatives and measures to emerge stronger.
It has already started Acceleration Programme with multi-year initiative to drive revenue growth, but more such initiatives are necessary.
The NY-based company generates revenue of US $ 5.88 billion.
