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While it has just announced an agreement with a view to acquiring its competitor Capri (Versace, Michael Kors and Jimmy Choo), the American Tapestry group (Coach, Kate Spade and Stuart Weitzman) has just lifted the veil on an unflamboyant 2022-2023 financial year.
American Tapestry is not in the best of shape to integrate its rival and compatriot Capri (Versace, Michael Kors and Jimmy Choo), with whom it announced a takeover agreement at the beginning of August.
Capri, itself owner of the Coach, Kate Spade and Stuart Weitzman brands, has just announced virtually stable sales for the 2022/2023 financial year, which ended on July 1. Sales were $6.66 billion (€6.17 billion), compared with $6.68 billion (€6.19 billion) in 2021/2022.
Three lacklustre brands
None of the Group’s brands was particularly dynamic: revenues for Coach, its historic driving force, grew by just 1% to around $5 billion (€4.6 billion), while Kate Spade and Stuart Weitzman fell by 2% and 11% respectively to $1.4 billion (€1.3 billion) and $282 million (€261 billion).
The Group’s annual net income did round off by 9% to $936 million (€867 billion), with diluted earnings per share of $3.88 instead of $3.17 in 2021-22.
However, the end of the year does not point to any real awakening for the Group.
Sluggish fourth quarter
The Tapestry group’s sales stagnated again in the fourth quarter, at $1.6 billion (€1.5 billion). And while Coach regained some energy, with a 5% rise in sales to $1.25 billion (€1.16 billion), the other brands continued their slide (-9% to $309 million (€286 billion), for Kate Spade and -11% to $63 million (€5.8 billion), for Stuart Weitzman.
Admittedly, the group is targeting an increase in sales of around 3% to 4% to almost $6.9 billion (6.4 billion euros), on a reported basis and at constant exchange rates for the 2023/2024 financial year.
How successful could a Tapestry-Capri merger be?
But some observers still question Tapestry’s ability to successfully merge with Capri. The latter itself posted stable sales of $5.6 billion in the 2022/2023 fiscal year ended April 1. But in the fourth quarter, it fell by 9.6%.
Will Tapestry succeed in meeting all the challenges of such a merger: establishing the right synergies without diluting the brands’ identities and vampirizing each other, successfully bringing together two different, hitherto enemy cultures, and above all regaining the dynamism of the more mature brands and exploiting the potential of the newer ones?
When the transaction closes, the new group, with its 33,000 employees, could generate sales of $12 billion (€11 billion), and hold 6% of the global luxury apparel and accessories market ($200 billion or €185 billion).
Featured photo : © Coach [/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
While it has just announced an agreement with a view to acquiring its competitor Capri (Versace, Michael Kors and Jimmy Choo), the American Tapestry group (Coach, Kate Spade and Stuart Weitzman) has just lifted the veil on an unflamboyant 2022-2023 financial year.
American Tapestry is not in the best of shape to integrate its rival and compatriot Capri (Versace, Michael Kors and Jimmy Choo), with whom it announced a takeover agreement at the beginning of August.
Capri, itself owner of the Coach, Kate Spade and Stuart Weitzman brands, has just announced virtually stable sales for the 2022/2023 financial year, which ended on July 1. Sales were $6.66 billion (€6.17 billion), compared with $6.68 billion (€6.19 billion) in 2021/2022.
Three lacklustre brands
None of the Group’s brands was particularly dynamic: revenues for Coach, its historic driving force, grew by just 1% to around $5 billion (€4.6 billion), while Kate Spade and Stuart Weitzman fell by 2% and 11% respectively to $1.4 billion (€1.3 billion) and $282 million (€261 billion).
The Group’s annual net income did round off by 9% to $936 million (€867 billion), with diluted earnings per share of $3.88 instead of $3.17 in 2021-22.
However, the end of the year does not point to any real awakening for the Group.
Sluggish fourth quarter
The Tapestry group’s sales stagnated again in the fourth quarter, at $1.6 billion (€1.5 billion).
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[/vc_cta][vc_column_text]Featured photo : © Coach[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
While it has just announced an agreement with a view to acquiring its competitor Capri (Versace, Michael Kors and Jimmy Choo), the American Tapestry group (Coach, Kate Spade and Stuart Weitzman) has just lifted the veil on an unflamboyant 2022-2023 financial year.
American Tapestry is not in the best of shape to integrate its rival and compatriot Capri (Versace, Michael Kors and Jimmy Choo), with whom it announced a takeover agreement at the beginning of August.
Capri, itself owner of the Coach, Kate Spade and Stuart Weitzman brands, has just announced virtually stable sales for the 2022/2023 financial year, which ended on July 1. Sales were $6.66 billion (€6.17 billion), compared with $6.68 billion (€6.19 billion) in 2021/2022.
Three lacklustre brands
None of the Group’s brands was particularly dynamic: revenues for Coach, its historic driving force, grew by just 1% to around $5 billion (€4.6 billion), while Kate Spade and Stuart Weitzman fell by 2% and 11% respectively to $1.4 billion (€1.3 billion) and $282 million (€261 billion).
The Group’s annual net income did round off by 9% to $936 million (€867 billion), with diluted earnings per share of $3.88 instead of $3.17 in 2021-22.
However, the end of the year does not point to any real awakening for the Group.
Sluggish fourth quarter
The Tapestry group’s sales stagnated again in the fourth quarter, at $1.6 billion (€1.5 billion).
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[/vc_cta][vc_column_text]Featured photo : © Coach[/vc_column_text][/vc_column][/vc_row]
