Latest news with #TapestryInc
Yahoo
6 days ago
- Business
- Yahoo
Tapestry's Strong Gains at Coach Tempered by $855M in Kate Spade Charges
Updated 4:48 p.m. ET Aug. 14 Coach continued to carry Tapestry Inc. higher in the fourth quarter — now Kate Spade just has to pull its weight as the company enters into a new fiscal year with a little more caution than expected. More from WWD Launchmetrics Unveils AI-powered Tools to Decode Brand Perception An AI Workforce - Getting and Keeping a Job in Fashion Burberry Back on Lyst Hottest Brands Ranking After Yearlong Absence Sales of the powerhouse Coach handbag brand shot up 14 percent to $1.4 billion in the quarter, giving a little accessible luxury luster to the company. But Kate Spade continued to be a drag on the top line with business down 13 percent to $252.6 million in the quarter. The quirky handbag brand has been a trouble spot for Tapestry for some time and led to $855 million in asset and goodwill impairment charges in the quarter. Those charges, which are dictated by accounting rules and have no practical impact on operations, write down a good deal of the $2.4 billion the company paid to buy Kate Spade in 2017 and pushed Tapestry to a net loss of $517 million in the fourth quarter. Adjusted earnings tallied $223 million, or $1.04 a share — 2 cents ahead of the $1.02 analysts forecast, according to Yahoo Finance. For the full year, Tapestry's sales rose 5 percent to $7 billion as the company paid $300 million in dividends, bought back $2 billion in stock and posted adjusted earnings of $1.13 billion, or $5.10 a share. That delivered on a promise Tapestry made three years ago to hit adjusted earnings of $5 a share. 'The environment has been challenging over the last three years, but we delivered on the earnings targets that we set back then,' said Joanne Crevoiserat, chief executive officer, in an interview with WWD. As usual, though, Wall Street was focused on the future and pushed shares of the company down 15.7 percent to $95.69 on Thursday as investors worried over an annual forecast calling for low-single digit sales growth. Tapestry is looking for sales to approach $7.2 billion this year with earnings of $5.30 to $5.45 a share — including a 60 cent, or $160 million, hit from trade war tariffs. Todd Kahn, CEO and brand president for Coach, told analysts on conference that his brand is 'constantly looking at our product offering, focusing and focusing. One of the things about telling deeper and richer stories is doing it on fewer big ideas. And that's what's cutting through. Our guidance for the year has most of our growth coming through [average unit retail price] growth. We believe units will continue to grow as well. So it's very powerful for us. I am not interested in churn. We are interested in building long-term sustainable growth over the many years to come, and that's how we're doing it. And we're going to continue to do it that way.' It took time to really get the Coach brand ticking along — and Tapestry has been more than a little busy over the past few years, putting together and then fighting for and ultimately losing its mega deal to buy Capri Holdings, offloading Stuart Weitzman, dealing with tariffs and the rest of it. But Crevoiserat put the emphasis on the work at Tapestry's main brand. 'It really is a story about Coach outperformance,' the CEO said in the interview. 'That outperformance continues. We achieved double-digit revenue growth for the quarter and for the year well ahead of the industry and, importantly, at exceptional margins. We're building this brand. It is an 85-year-old storied brand with modern relevance. This brand is relevant with a new generation of consumers around the world. We see a lot of opportunity in the future for growth.' And the CEO continues to believe in Kate Spade. 'The work to reset the Kate Spade brand is underway,' Crevoiserat said. 'We're confident in the path forward. We have a lot of learnings from Coach that we're applying and, importantly, our strategies are clear. We're working with both urgency and discipline. We are disciplined operators and we're applying that discipline to Kate and we're also investing to reignite that growth. We see Kate as another growth factor for Tapestry.' While the fashion industry is still trying to get its collective head around tariffs, Crevoiserat is focused more on what helped revitalize Coach and is pushing the brand ahead. 'The tariffs coming in changed the cost structure,' she said. 'What they haven't done is changed our focus on our positioning in the market. We are maniacally focused on the impact on the consumer, staying close to the consumer and delivering value that they recognize in the market. 'We've done intentional work to build this brand heat. We love where we play, and this global scale is important because we deliver compelling value into the marketplace. The innovation that we're delivering, the quality that we're delivering to the consumer is, I think it's stronger than it ever has been. At a time where the consumer's being choiceful and may be pressured with inflation and tariffs and other things on their mind, this is a great position to be in, and we're continuing to invest. We're playing offense.' Neil Saunders, managing director of GlobalData, said Tapestry's results had the company ending the year 'in style' and marked it out as 'one of the clear winners in the luxury and premium arena.' Saunders attributed Coach's growth to the fact that it is 'not in the super-premium part of the market where prices have risen unreasonably, squeezing out many middle-income consumers. This trend at the top end has been helpful to Coach as consumers that have defected from higher-priced brands have looked at Coach as an alternative.' And he said the brand further capitalized on the dynamic by using a 'more fashion-forward approach' that 'simulates a greater buying frequency among customers of all ages.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Sign in to access your portfolio
Bloomberg
14-08-2025
- Business
- Bloomberg
Tapestry's Profit Outlook Is Below Estimates on Tariff Costs
Tapestry Inc. 's annual outlook for a key profit metric missed analysts' forecasts due in part to tariffs, a sign that Wall Street is still adjusting to the full cost of duties for US companies. The owner of Coach and Kate Spade said it's expecting earnings per diluted share between $5.30 to $5.45 in the current fiscal year. That would be a 4% to 7% increase versus the prior year. Analysts in a Bloomberg survey were expecting the profit metric to reach $5.49.
Yahoo
02-07-2025
- Business
- Yahoo
Tapestry, Inc. to Host Investor Day on September 10, 2025
NEW YORK, July 02, 2025--(BUSINESS WIRE)--Tapestry, Inc. (NYSE: TPR), a house of iconic accessories and lifestyle brands, will host an Investor Day on Wednesday, September 10, 2025 in New York City. The event will highlight Tapestry's long-term strategic growth initiatives and financial outlook, featuring a series of presentations as well as a question and answer session with members of the Company's senior leadership team, including Joanne Crevoiserat, Chief Executive Officer, and Scott Roe, Chief Financial Officer and Chief Operating Officer. The event will begin at 8:30 a.m. ET and is expected to conclude by 12:00 p.m. ET. Due to limited capacity, in-person attendance is by invitation only and advance registration is required. In addition, a live video webcast of the event, along with accompanying slides, will be streamed simultaneously and can be accessed on Tapestry's Investor Relations website, An archived replay will be available shortly after the conclusion of the live event. About Tapestry, Inc. Our global house of brands unites the magic of Coach, kate spade new york and Stuart Weitzman. Each of our brands are unique and independent, while sharing a commitment to innovation and authenticity defined by distinctive products and differentiated customer experiences across channels and geographies. We use our collective strengths to move our customers and empower our communities, to make the fashion industry more sustainable, and to build a company that's equitable, inclusive, and diverse. Individually, our brands are iconic. Together, we can stretch what's possible. To learn more about Tapestry, please visit For important news and information regarding Tapestry, visit the Investor Relations section of our website at In addition, investors should continue to review our news releases and filings with the SEC. We use each of these channels of distribution as primary channels for publishing key information to our investors, some of which may contain material and previously non-public information. The Company's common stock is traded on the New York Stock Exchange under the symbol TPR. This information to be made available in this press release may contain forward-looking statements based on management's current expectations. Forward-looking statements include, but are not limited to statements regarding long term performance, statements regarding the Company's capital deployment plans, including anticipated annual dividend rates and share repurchase plans, and statements that can be identified by the use of forward-looking terminology such as "may," "can," "if," "continue," "project," "assumption," "should," "expect," "confidence," "goals," "trends," "anticipate," "intend," "estimate," "on track," "future," "well positioned to," "plan," "potential," "position," "deliver," "believe," "seek," "see," "will," "would," "uncertain," "achieve," "strategic," "growth," "target," "guidance," "forecast," "outlook," "commit," "innovation," "drive," "leverage," "generate," "enhance," "effort," "progress," "confident," "we can stretch what's possible," similar expressions, and variations or negatives of these words. Future results may differ materially from management's current expectations, based upon a number of important factors, including risks and uncertainties such as the impact of international trade disputes and the risks associated with potential changes to international trade agreements, including the imposition or threat of imposition of new or increased tariffs or retaliatory tariffs implemented by countries where our manufacturers are located as well as the imposition of additional duties on the products we import, economic conditions, recession and inflationary measures, risks associated with operating in international markets, including currency fluctuations and changes in economic or political conditions in the markets where we sell or source our products, the ability to anticipate consumer preferences and retain the value of our brands and respond to changing fashion and retail trends in a timely matter, including our ability to execute on our e-commerce and digital strategies, the impact of tax and other legislation, the ability to successfully implement the initiatives under our 2025 growth strategy, the effect of existing and new competition in the marketplace, our ability to successfully identify and implement any sales, acquisitions or strategic transactions on attractive terms or at all, including our proposed sale of the Stuart Weitzman Business, our ability to achieve intended benefits, cost savings and synergies from acquisitions, our ability to control costs, the effect of seasonal and quarterly fluctuations on our sales or operating results; the risk of cybersecurity threats and privacy or data security breaches, our ability to satisfy our outstanding debt obligations or incur additional indebtedness, the risks associated with climate change and other corporate responsibility issues, our ability to protect against infringement of our trademarks and other proprietary rights, and the impact of pending and potential future legal proceedings, etc. In addition, purchases of shares of the Company's common stock will be made subject to market conditions and at prevailing market prices. Please refer to the Company's latest Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission for a complete list of risks and important factors. The Company assumes no obligation to revise or update any such forward-looking statements for any reason, except as required by law. View source version on Contacts Tapestry, and Investors:Christina ColoneGlobal Head of Investor Relations212/946-7252ccolone@ Media:Jennifer LeemannGlobal Head of Communications212/631-2797jleemann@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Caleres Secures Expanded Credit Facility in Time for Stuart Weitzman Purchase
Caleres Inc. has its financial ducks in a row as it prepares to close on its purchase of the Stuart Weitzman brand. The global footwear company said on Monday that it has amended its credit agreement, which extends its senior secured asset-based revolving credit facility to June 2030. In addition, the borrowing capacity will increase by $200 million to $700 million. Furthermore, there is an 'accordian' provision that allows Caleres to request an increase in the size of the facility to '$950 million in the aggregate.' More from WWD Federico Marchetti Forays Into Hospitality, Takes Part in 200M Euro Restoration of Venice's Grand Hôtel des Bains What's Driving Footwear's M&A Craze in 2025 Vera Bradley CEO, CFO to Exit, Board Creates 'Transformation' Committee 'The expanded facility provides Caleres with enhanced liquidity and flexibility, and further strengthens the balance sheet,' Jack Calandra, Caleres' senior vice president and CFO, said. 'In the near term, after continuing to pay our dividend, Caleres' capital allocation priorities are to complete the acquisition of Stuart Weitzman and invest in our growth vectors.' Calandra said that over the longer term, the company will balance its investment priorities with debt reduction and returning capital to shareholders. Caleres in February inked a deal to acquire the Stuart Weitzman brand from Tapestry Inc. for $105 million. At the time, Caleres president and CEO said the acquisition advances the company's 'strategic agenda' to grow its brand portfolio segment with an eye to more global and direct-to-consumer reach. The plan is for Stuart Weitzman to be the lead brand for Caleres. The closing date for the transaction is this summer, and Caleres has previously said that it would fund the deal through its revolving credit agreement. Caleres is set to provide additional details on integration plans once the deal closes. Other shoe brands in Caleres' portfolio include Famous Footwear, Sam Edelman, Allen Edmonds, Naturalizer, Vionic and Dr. Scholl's Shoes, among others. Last month, the company said first quarter net income for the three months ended May 3 fell to $6.9 million from $30.9 million in the same year-ago period. Net sales were down 6.8 percent to $614.2 million from $6.6 million. Sales were weak in February, while volatility increased in April after President Donald Trump announced reciprocal tariffs on April 2. Caleres also incurred additional costs connected with moving goods and canceled orders related to tariffs. Also impacting the quarter were customer credit issues and/or bad debt at some wholesale accounts, such as the Canadian retail chain Hudson's Bay that ended up shutting all stores and liquidating operations. As for the tariff issue, the company expects to have 10 percent or less sourced from China in the back half of 2025. And like many other brands, Caleres is also selectively raising prices. Coming up, the Jordan brand will be an all-door exclusive for the shoe chain for back-to-school across men's, women's, kids and accessories. And this fall will see the first shoe collection for Favorite Daughter, which will be launched with Caleres under a new licensing agreement. The Weitzman brand was launched in 1986, initially as a women's shoe brand that later expanded to include men's footwear, as well as handbags. Tapestry acquired the brand in 2015 from private equity firm Sycamore partners in a transaction valued at $574 million. The shoe firm became part of Sycamore's portfolio after it acquired Jones Group Inc. for $1.2 billion in 2014. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Elyce Arons, Cofounder and CEO of Frances Valentine, Reflects on Friendship With Kate Spade, Success of Frances Valentine and New Book
On the eve of the release of her new book, 'We Might Just Make It After All' (Gallery Books, an imprint of Simon & Schuster) Elyce Arons held court at the Hotel Chelsea Monday night talking about her current business, Frances Valentine, and her long-standing friendship with Kate Spade, with whom she founded the multibillion-dollar fashion company, Kate Spade. Arons and Spade became best friends in college (The University of Kansas and Arizona State University) and eventually moved to New York where they started a line of handbags — ultimately transforming the accessories industry. The Kate Spade brand was eventually sold to Neiman Marcus Group, Liz Claiborne Inc., and ultimately Tapestry Inc., where it lives today. More from WWD How Tapestry Drives Adaptable Digital Journeys With Technology Joanne Crevoiserat Touts 'Step Change' in Tapestry Growth Madison Beer Falls in Love With Friendship in Kate Spade New York's Valentine's Day Collection 2025 Gift Guide Arons and Spade ended up starting another brand, Frances Valentine, in 2016 but Spade died of suicide in 2018. Asked what prompted her to write this book about their long-standing friendship, Arons told WWD, 'It's taken me this long to actually get to a point where I could, but I feel like everyone remembers Katy for how she left us, but not how wonderful and funny and gracious she was. Most people don't because she was pretty shy…..I just feel like I want people to know the great times we had. I mean she was the funniest person you'd ever want to meet.' Arons wrote the book with her husband, Andy Arons. Arons said that after they sold the Kate Spade brand, she and Spade went on to found Frances Valentine with a group of investors. Andy Spade, Kate's husband, is Arons' business partner. While Arons stayed pretty low profile in the ensuing years, the business has been experiencing some impressive gains. Frances Valentine, which has mostly focused on the direct-to-consumer channel, is up 40 percent this year, according to Arons. Frances Valentine's e-commerce is up 284 percent this month-to-date. After COVID-19, Frances Valentine launched the apparel division and brought in a new vice president, who came from Zanella. Today, Frances Valentine sells such retailers as Neiman Marcus, Saks Fifth Avenue, and Nordstrom (all online), as well as Dillards, where it's available in-store, as well as and the brand's freestanding stores. She declined to disclose the company's volume figure. At present, apparel represents 60 percent of the business, and accessories account for 40 percent. She explained that the business has been primarily e-commerce-driven since they started. They now have nine retail stores, which have been doing well. The breakdown is now 50 percent e-commerce, 30 percent retail and 20 percent wholesale. 'And wholesale and retail are growing really fast,' said Arons. Frances Valentine's nine stores are on Madison Avenue and 73rd Street; Sag Harbor, N.Y.; Dallas; Houston; Palm Beach and Naples, Fla.; Birmingham, Ala.; Atlanta, and Alexandria, Va. Cities they're considering for expansion are Nashville; Charlotte, N.C., and Chicago, as well as various cities in California. Describing the Frances Valentine customer, Arons said, 'I think it's a woman who really appreciates individual style. She likes to wear color, and I think that's why a lot of our business is concentrated in the South, and she likes prints. And there's a nostalgic feel to our brand because Katy [Spade] and I were such huge vintage shoppers. We just created these silhouettes that are pieces that you buy today and you want to pull out of your closet 10 years from now, and not feel like it's out of style. They're not trend driven at all. We're the opposite of fast fashion.' Arons said she like to describe the line as 'modern vintage.' 'We put pockets in everything. We make sizes from extra small up to extra large,' she said. Arons said she's part of the three-person design team. While Arons said she doesn't sketch, she said they always 'make what we like.' Arons said they took an eight-year break before they launched Frances Valentine. 'So when we came back, we were like, 'we know how to do this,' We'll do the whole thing again.' But she said that when they sold Kate Spade, they didn't have much of an e-commerce business, and it was just one person sitting in a corner doing e-commerce. 'So when we started Frances Valentine, we knew we had to build data. What we didn't realize was how much the wholesale business had changed and e-commerce had taken over so much, and how influencers had taken over from editors.' The business started in 2014 and was launched in 2016. William McComb, former CEO of Liz Claiborne Inc. (renamed Fifth & Pacific Cos.), is a board adviser. The company makes their collections all over the world. The handbags are made in Italy and Asia, the knits are done in Peru, the denim is made in Turkey and the wovens in India. They also produce some things in the U.S. The sweet spot for dresses is $398. Turning to opportunities for Frances Valentine, Arons said they just had a very successful collaboration with Caddis eyewear, which sold out in 48 hours. They're looking into licensing deals for jewelry, footwear, fragrance, eyewear and home. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
