Tapestry in the US reaches record growth with 1.5 million new users

Recently, American luxury retailer Tapestry said that its second-quarter performance in fiscal 2021 exceeded expectations, mainly due to its e-commerce and strong performance in China. Data shows that Tapestry's website has reached 1.5 million new customers, and its online business has grown by triple digits compared to last year, with digital sales accounting for about one-third of global sales and nearly half of North American revenue.

Singles’ Day sales hit record high

In the three months ended December 26, 2020, Tapestry's net sales fell 7% to $1.69 billion, with operating income of $389 million. However, Tapestry 's online revenue in China increased by more than 30% year-on-year , and global digital sales increased by triple digits year-on-year. Record sales were achieved during China 's Singles' Day shopping spree .

The latest quarterly report shows that Tapestry's online sales soared 100%, mainly due to people's enthusiasm for buying leather products during the COVID-19 pandemic, which drove a surge in its online sales.

According to Refinitiv data, Tapestry's annual sales are forecast to grow 6.9% in 2020. However, Tapestry said its total sales fell 7% during the holiday season, mainly because its offline stores have not yet recovered from the COVID-19 pandemic.

After the new CEO of Tapestry took office, he implemented measures such as closing a large number of offline stores and reducing the company's employees, reducing its fixed costs. In addition, the new CEO also used the database to bring new accessories to the market and stabilize online inventory and profits.

Tapestry shares rise 32%

Tapestry is a luxury retailer in the United States, located in New York. It was founded in 2017 and mainly sells luxury goods such as clothing, shoes and bags. Tapestry has three major brands, namely Kate Spade and Stuart Weitzman.

Data shows that as of December 26, 2020, Tapestry's stock price has risen 32% , and its net income has increased by 4.1% to US$3.11 from US$298.8 million in the same period of 2019. Although the increase is not large, there is an upward trend.

However, from a brand perspective, Tapestry's key brand Coach's net sales fell 4% to US$1.23 billion, with operating income of US$412 million; Kate Spade's net sales fell 13% to US$376 million; Stuart Weitzman's net sales plummeted 27% to US$85 million.

In general, Tapestry's overall sales showed a downward trend in 2020, but the sharp increase in operating profit in the most recent quarter increased Tapestry's confidence. Tapestry said it will continue to work hard to leverage the competitive advantages of the platform and establish good connections with customers to achieve product innovation and brand expansion possibilities.

Tapestry

Record-breaking

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