Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, revised its annual sales projection, citing weakened demand for handbags and footwear in the United States. Despite a 6% increase in first-quarter revenue compared to 2022, Tapestry’s net sales of $1.51 billion fell short of analysts’ expectations, prompting a downward adjustment to its yearly projection. This development contributed to a reported 1.7% drop in Coach’s stock and a 30% annual loss for the company.
In the midst of these financial adjustments, Tapestry is actively engaged in the acquisition of Versace’s parent company, Capri Holdings, with the completion expected in 2024.
Joanne Crevoiserat, CEO of Tapestry, highlighted, “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 grappling with challenges in the sale of its “accessible luxury” products, which include shoulder bags, clothing, and shoes. The struggles stem from the sector’s difficulty in coping with ongoing inflation and escalating borrowing costs in the United States, putting pressure on consumer budgets.
