Coach owner Tapestry posts narrower-than-expected loss, retailer to speed up turnaround plan
Employees prepare a window display at a Kate Spade shop in The Shoppes at Marina Bay Sands shopping mall in Singapore on June 19, 2020 as retail shops reopen in Singapore following the further easing of restrictions that were in place due to the COVID-19 novel coronavirus.
Roslan Rahman | AFP | Getty Images
Coach and Kate Spade owner Tapestry reported a narrower-than-expected loss on Thursday, as strong online sales helped offset the impact of closed stores during the coronavirus pandemic.
Shares of the company rose less than 1% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting for the fiscal fourth quarter, based on a survey of analysts by Refinitiv:
- Losses per share: 25 cents, adjusted vs. 57 cents, expected
- Revenue: $714.8 million vs. $663 million, expected
Tapestry reported a net loss of $293.8 million, or $1.06 per share, compared with a profit of $148.9 million, or 51 cents a share, a year ago.
Excluding special items, the company lost 25 cents per share.
Net sales dropped to $714.8 million from $1.51 billion a year ago.
Analysts had expected a loss of 57 cents per share, on revenue of $663.3 million, based on a Refinitiv survey.
As it faces challenges from the pandemic, Tapestry also lost its top leader. CEO Jide Zeitlin resigned in mid-July as the board began a probe into his personal conduct. He had just taken over the CEO role in September from Victor Luis.
Tapestry’s Chief Financial Officer Joanne Crevoiserat, a former Abercrombie & Fitch executive, is serving as interim CEO as the company looks for a permanent replacement.
This story is developing. Please check back for updates.
