Revenue of Tapestry's China market up over 30%

2021-02-06 12:03:47

Handbags are displayed on Coach's Tmall flagship store on Feb 5, 2021. [Photo/Coach] Thanks to e-commerce and a robust Chinese market, Tapestry, the parent company of Coach, Kate Spade and Stuart Weitzman, said its performance was better than expected for the last three months in 2020 as of Dec 26, in the second quarter performance report of its 2021 fiscal year, the Beijing News reported on Friday. Although its net sales dropped 7 percent to $1.69 billion, the operating revenue and operating margin rose from $363 million to $389 million and from 20.0 percent to 23.1 percent year-on-year. As per the report, the company's e-commerce recorded a three-digit increase in the second quarter of the 2021 fiscal year on a yearly basis. Digital business accounted for one-third of its global sales, and the Chinese mainland was a key powerhouse in reviving the firm, recording over 30 percent revenue increase year-on-year. During the Singles Day shopping spree last year, Tapestry created sales volume records on its Tmall platform, as Coach became the number one brand for handbag, suitcases and leatherware by sales volume, so did Stuart Weitzman in the footwear category. Tapestry closed 18 stores in its first half of 2021 fiscal year, an 84-store net reduction from a year earlier, saving about $300 million of total annualized expenses for the firm. With less sales promotion, tight inventory and cost management, the firm realized operating income growth for two consecutive quarters, Beijing News reported quoting Tapestry's CEO Joanne Crevoiserat. The firm said the second half of its 2021 fiscal year will see robust profit growth as expectable sales rebounding.