[vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”administrator,editor,author,armember”][vc_column][vc_column_text]<\/p>\n
American Tapestry is not in the best of shape to integrate its rival and compatriot Capri (Versace, Michael Kors and Jimmy Choo)<\/strong>, with whom it announced a takeover agreement at the beginning of August.<\/p>\n <\/p>\n Capri, itself owner of the Coach, Kate Spade and Stuart Weitzman brands<\/strong>, has just announced virtually stable sales for the 2022\/2023 financial year<\/strong>, which ended on July 1. Sales were $6.66 billion (\u20ac6.17 billion)<\/strong>, compared with $6.68 billion (\u20ac6.19 billion) in 2021\/2022.<\/p>\n <\/p>\n <\/p>\n None of the Group’s brands was particularly dynamic: revenues for Coach<\/strong>, its historic driving force, grew by just 1% to around $5 billion (\u20ac4.6 billion)<\/strong>, while Kate Spade and Stuart Weitzman fell by 2% and 11%<\/strong> respectively to $1.4 billion (\u20ac1.3 billion)<\/strong> and $282 million (\u20ac261 billion)<\/strong>.<\/p>\n The Group’s annual net income<\/strong> did round off by 9%<\/strong> to $936 million (\u20ac867 billion)<\/strong>, with diluted earnings per share of $3.88<\/strong> instead of $3.17 in 2021-22.<\/p>\n However, the end of the year does not point to any real awakening for the Group.<\/p>\n <\/p>\n <\/p>\n The Tapestry group’s sales<\/strong> stagnated again in the fourth quarter<\/strong>, at $1.6 billion (\u20ac1.5 billion)<\/strong>. And while Coach<\/strong> regained some energy, with a 5% rise in sales<\/strong> to $1.25 billion (\u20ac1.16 billion), the other brands continued their slide (-9% to $309 million (\u20ac286 billion), for Kate Spade<\/strong> and -11%<\/strong> to $63 million (\u20ac5.8 billion), for Stuart Weitzman<\/strong>.<\/p>\n <\/p>\n Admittedly, the group is targeting an increase in sales of around 3% to 4%<\/strong> to almost $6.9 billion (6.4 billion euros)<\/strong>, on a reported basis and at constant exchange rates for the 2023\/2024 financial year.<\/p>\n <\/p>\n <\/p>\n But some observers still question Tapestry’s ability to successfully merge with Capri<\/strong>. The latter itself posted stable sales<\/strong> of $5.6 billion in the 2022\/2023 fiscal year ended April 1. But in the fourth quarter, it fell by 9.6%.<\/p>\n <\/p>\n Will Tapestry succeed in meeting all the challenges of such a merger<\/strong>: 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?<\/p>\n <\/p>\n When the transaction closes, the new group<\/strong>, with its 33,000 employees, could generate sales of $12 billion<\/strong> (\u20ac11 billion)<\/strong>, and hold 6% of the global luxury apparel and accessories market<\/strong> ($200 billion or \u20ac185 billion).<\/p>\n Read also > American group Tapestry acquires Capri, owner of Michael Kors<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n Featured photo : \u00a9 Coach [\/vc_column_text][\/vc_column][\/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]<\/p>\n <\/p>\n American Tapestry is not in the best of shape to integrate its rival and compatriot Capri (Versace, Michael Kors and Jimmy Choo)<\/strong>, with whom it announced a takeover agreement at the beginning of August.<\/p>\n <\/p>\n Capri, itself owner of the Coach, Kate Spade and Stuart Weitzman brands<\/strong>, has just announced virtually stable sales for the 2022\/2023 financial year<\/strong>, which ended on July 1. Sales were $6.66 billion (\u20ac6.17 billion)<\/strong>, compared with $6.68 billion (\u20ac6.19 billion) in 2021\/2022.<\/p>\n <\/p>\n <\/p>\n None of the Group’s brands was particularly dynamic: revenues for Coach<\/strong>, its historic driving force, grew by just 1% to around $5 billion (\u20ac4.6 billion)<\/strong>, while Kate Spade and Stuart Weitzman fell by 2% and 11%<\/strong> respectively to $1.4 billion (\u20ac1.3 billion)<\/strong> and $282 million (\u20ac261 billion)<\/strong>.<\/p>\n <\/p>\n The Group’s annual net income<\/strong> did round off by 9%<\/strong> to $936 million (\u20ac867 billion)<\/strong>, with diluted earnings per share of $3.88<\/strong> instead of $3.17 in 2021-22.<\/p>\n <\/p>\n However, the end of the year does not point to any real awakening for the Group.<\/p>\n <\/p>\n <\/p>\n The Tapestry group’s sales<\/strong> stagnated again in the fourth quarter<\/strong>, at $1.6 billion (\u20ac1.5 billion)<\/strong>.<\/p>\n<\/div>\n<\/div>\n […][\/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…<\/p>\nThree lacklustre brands<\/h2>\n
Sluggish fourth quarter<\/h2>\n
How successful could a Tapestry-Capri merger be?<\/h2>\n
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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.<\/h4>\n
Three lacklustre brands<\/h2>\n
Sluggish fourth quarter<\/h2>\n