Coach Signature handbag
Source: Coach
Coach and Kate Spade owner Tapestry is seeing signs that consumers are returning to celebrating love, gathering with friends and going back into offices.
“We are starting to see where people have put off weddings for over a year — some of those life events — people are coming out and engaging in the real world again,” Chief Executive Joanne Crevoiserat said in an interview Thursday.
Tapestry, which also owns Stuart Weitzman, is quickly restocking merchandise in the bridal category, Crevoiserat noted. More shoppers are scouting for dressier heels and clutch bags to take to events such as weddings and showers.
“But it’s all about balance,” the CEO explained. “We’re also introducing newness in casual, as well. We are seeing positive signs and encouraging signs of a recovery as the vaccination efforts progress.”
Coach President Todd Kahn said another key opportunity for the brand in the months ahead will be selling shoppers back-to-work bags that are big enough to hold laptops, tablets, planners and other office accessories.
“Particularly in North America, as the consumer goes back, we see two opportunities,” Kahn explained.
“One is the bag that I need for work, which I haven’t replaced in maybe a year and a half. And then that fun bag to go out with.”
Tapestry reported fiscal third-quarter sales and earnings that topped analyst estimates, boosted by digital growth and demand for luxury goods roaring back in China. In North America, its sales returned to pre-pandemic levels.
But Tapestry shares were falling around 4% in early afternoon trading Thursday, as its overall revenue remained below 2019 levels. The retailer has yet to offer a full-year outlook.
