Tapestry, Parent Company of Coach and Kate Spade, Expects Record Performance in Greater China for FY2024

12月 12, 2023

 Tapestry, Inc., the American accessible luxury group owning brands Coach, Kate Spade, and Stuart Weitzman, has released its financial results for the first quarter of the 2024 fiscal year ending in September.

The financial report revealed the latest performance in the Greater China region — a 9% year-on-year revenue increase, signaling a recovery.

During the subsequent conference call, CEO Joanne Crevoiserat and CFO Scott Roe disclosed more data on the Chinese market and provided guidance for the full-year performance.

Key insights into the China market/Chinese consumer data are as follows:

  • Sales in the Greater China region grew 9% year-on-year to $244.6 million, resuming year-on-year growth and surpassing the first quarter of fiscal 2021 ($228 million in the same period, i.e., the third quarter of the calendar year 2020). However, this figure is still below the first quarter of fiscal 2022 ($276 million in the third quarter of the calendar year 2021).
  • Supported by improving travel trends in Asia and Europe, global sales to Chinese consumers increased by a low double-digit percentage.
  • Despite a continuous rise in travel spending by mainland Chinese tourists, levels remain below pre-pandemic figures.

Scott Roe provided guidance, predicting mid-single-digit growth in the Greater China region for the full year.

We still anticipate that the performance for fiscal 2024 will surpass our historically best year, fiscal 2021, with total sales of $1.094 billion,” added Roe.

Joanne Crevoiserat also shared the latest performance of their core brands in the Chinese market:

  • Coach: The launch of the Coach Idol Bag was well-received by Chinese consumers, with its Average Unit Retail (AUR) significantly outperforming the average.
  • Kate Spade: The brand is intensifying investments to build brand awareness and exploring new store formats. Additionally, Chinese consumers have shown strong resonance with lifestyle products and jewelry.

 | Source: Conference Call Record

 | Image Credit: Tapestry Official Website

丨Reporter:Wang Jiaqi

 | Editor: LeZhi