Tapestry sales falter amid waning demand in North America

Tapestry, the parent company of Coach, Kate Spade and Stuart Weitzman has reported that net sales were down slightly from $6.68bn (£5.25bn) in 2022 to $6.66bn (£5.24bn) for the year ended 1 July.

This comes as waning demand among North American consumers led to a 2% revenue decline for the entire year and a further 8% decline in Q4. 

The group, which acquired Capri Holdings for $8.5bn (£6.7bn) last week, delivered international revenue growth of 13% at a constant currency for the year, with Europe seeing a 7% rise, despite pandemic-related pressures in the first half of the year. 

Nonetheless, Tapestry’s gross profit totalled $4.71bn (£3.71bn) with a gross margin of 70.8% during the year, compared with a total of $4.65bn (£3.66bn) and a gross margin of 69.6% in the previous year. 

According to the retailer, this reflected a benefit of 140 basis points from lower freight expenses, as well as operational improvements that were “partially” offset by a foreign exchange headwind of 90 basis points.

Joanne Crevoiserat, CEO of Tapestry, said: “We achieved record earnings per share this fiscal year, reinforcing the power of brand building, consumer-centric strategies and disciplined execution. 

“Importantly, we meaningfully advanced our strategic priorities, engaging with consumers around the world through product excellence, unique storytelling and distinctive omnichannel experiences.” 

She added: “At the same time, we continued to invest in our brands and our data-rich customer engagement platform, which underpin our growth agenda.”