Tapestry (NYSE: TPR) owner of Coach and Kate Spade, reported a better than anticipated quarter Thursday, with online sales driving the positive outturn throughout the coronavirus pandemic. Shares were up 8% during premarket trading.
The luxury fashion company stated it is cutting expenses in order to grow its digital presence as a means of evolving amid the economic downturn. Tapestry said its e-commerce sales had increased by triple digits in comparison to the previous year. Furthermore, the company acquired approximately 1 million new customers via online in North America throughout the quarter.
“We have placed too much focus on the customer we wanted, and not enough on who our customer actually is [and] what we as a brand stand,” said Todd Kahn, Coach brand president and CEO. “We’re ready to reignite the accessible luxury segment by evolving our message.”
For the quarter ended June 27 the company reported a loss per share of USD.25 compared to the expected loss of USD.57. Revenue amounted to USD714.8 Million in comparison to the anticipated USD663 Million.
The report signaled a net loss of USD293.8 Million, or USD1.06 a share in comparison to last year’s profit of USD148.9 Million, or USD.51 a share.
“Our fourth-quarter results reflected our effective and values-led approach to navigating the COVID-19 pandemic,” interim CEO Joanne Crevoiserat said in a statement. “This performance exceeded internal expectations, demonstrating the power of our unique brands and the decisive actions taken to adapt our business to the rapidly evolving environment and enhance financial flexibility.”
Tapestry stated it would be focussing on pushing a turnaround strategy by becoming leaner and more driven with its online platform to increase sales for Coach, Kate Spade and Stuart Weitzman. Ultimately, it expects to cut expenses by USD300 Million, including USD200 Million estimated for 2021.