×
64 875
Fashion Jobs
MACY'S
Colleague, Visual Security Officer, Glendale Galleria - Flex
Permanent · Glendale
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · Birmingham
JORDAN
Jordan Brand Planning Manager - Dick's Sporting Goods
Permanent · Pittsburgh
ROSS STORES
Store Protection Specialist
Permanent · El Cerrito
ROSS STORES
Store Protection Specialist
Permanent · Commerce
MARSHALLS
Retail Department Supervisor--Stockroom/Warehouse
Permanent · Slidell
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · Upland
ULTA BEAUTY, INC.
General Manager
Permanent · San Antonio
ULTA BEAUTY, INC.
Retail Sales Manager
Permanent · Orem
ULTA BEAUTY, INC.
Retail Sales Manager
Permanent · Pearland
ULTA BEAUTY, INC.
Retail Sales Manager
Permanent · Columbus
ULTA BEAUTY, INC.
co - Sales Manager
Permanent · Winston-Salem
ULTA BEAUTY, INC.
Retail Sales Manager
Permanent · Shreveport
KOHLS
Full-Time Loss Prevention Officer
Permanent · Aurora
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · West Bloomfield Township
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Blue Springs
KOHLS
Full-Time Loss Prevention Officer
Permanent · Chino
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Canton
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Washington
KOHLS
Full-Time Loss Prevention Supervisor
Permanent · Lansdale
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Hamden
ESTÉE LAUDER
Aveda Sales Executive Director - Minneapolis, mn
Permanent · Minneapolis
By
Reuters
Published
Feb 6, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Coach powers Tapestry holiday quarter beat; coronavirus impact looms

By
Reuters
Published
Feb 6, 2020

New lines of Coach handbags helped Tapestry Inc beat holiday quarter expectations on Thursday, sending its shares up 6%, even as the fashion house warned the coronavirus outbreak could dent its sales by up to $250 million.


A model from Coach's new Tabby handbag line - Photo: Coach



Tapestry has closed a majority of its stores in mainland China and became the latest company to cut its earnings outlook following the epidemic that has killed more than 500 people.

Michael Kors owner Capri Holdings, Ralph Lauren and Levi Strauss have all closed outlets in the world’s second largest economy - a critical market for luxury goods makers.

Like its peers, Tapestry has invested heavily in the region and said sales were strong before the outbreak, driven by the launch of its products on Alibaba Group Holding Ltd’s Tmall.

Coach sales rose 2% to $1.27 billion in the second quarter, driven by higher prices, its new “Tabby” handbag line and a Star Wars-themed collection of fanny packs and bags.

To keep shoppers, especially millennials and Gen Z, walking into stores, the high-margin brand also tapped actor Michael B. Jordan to design a limited edition Naruto line of apparel.

Excluding certain items, Tapestry earned $1.10 per share in the quarter, beating analysts’ average estimate of 99 cents, according to IBES data from Refinitiv.

Tapestry’s total quarterly net sales rose nearly 1% to $1.82 billion, also helped by improvement in sales at Kate Spade.

The company on Thursday named Liz Fraser, president of New York-based women’s fashion brand Lafayette 148, as the new chief executive officer of Kate Spade, which it bought in 2017.

Analysts at Bernstein said the appointment would be perceived as a positive change at the struggling fashion label.

CORONAVIRUS IMPACT

Second-half financial results could be hit by about $200 million to $250 million in sales and 35 cents to 45 cents in earnings per share, Tapestry said.

Tapestry said China represents a low to mid-teens percentage of the company’s total revenue. It has also lowered its supply chain exposure to the country by shifting production to other regions.

“Investors appear to be relieved that the impact from the coronavirus wasn’t as bad as they had feared going into the print,” said Karan Gujadhur, an equity analyst at Woozle Research in London.

However, he said based on the impact of the outbreak spreading to regions outside China, the hit to Tapestry appears “to be far more bearish that management are suggesting in their update.”

© Thomson Reuters 2021 All rights reserved.