Coach Boosts the Growth of Tapestry, whilst Stuart Weitzman, Kate Spade Hesitate

The US clothing retailers have reported revenue of $1.48 billion and an after-tax income of $211.7 million in the 4th-quarter of the year. A 31% increase in sales is the result of the purchase of the Kate Spade agency subsequent to the 4th quarter of the financial year before.

Nevertheless, this is the last quarter of the year during which the sales line would be pushed by this inconsistency, meaning that the next fiscal year may notice a much truer overview of underlying development. For this quarter, the results are positive in general – but mostly due to Coach which has driven forward the entire business.

The numbers from Kate Spade and Stuart Weitzman are less magnificent. The latter is understandable given that the brand still remain in transition, but the former is disappointing a little bit because it is resulted from the wrong steps in the entire operation.

Kate Spade has been currently part of Tapestry for a year. Over that time, this group has taken a disciplined approach to re-edify the equity of the brand, such as pulling back on excess activities for promotion as well as lessening the subjection to the adverse wholesale channels.

This task is now almost done and while comparable sales in the world were down 3%, margins are still boosting and top-line revenue starts to look more positive. This brand is now standing in a greater position and should begin to create a contribution

in a rock-hard top and bottom line over the following financial year.

Meanwhile, Stuart Weitzman kept its run of negative task with a deep decrease in margin and sales. Most of the issues at Stuart Weitzman are the production mistakes, which delayed the major seasonal styles.