Business News
  • share with weibo

Global | Coach Tapestry's 31% Sales Increase in the First Half of 2018

Sep 10, 2018.Xueqing DingTokyo, JP
  • share with weibo

Tapestry Group that owns fashion brand Coach, announced the financial situation for the first half of fiscal year 2018. Due to the strategy of the brand acquisition, the group's sales increased 31% year-on-year to US$5.88 billion, excluding exchange rate effects and increased by 30%. Since May 2017, Coach officially acquired Kate Spade. In October 2017, the original group name, Coach Inc. was officially renamed Tapestry Inc., and the group completed the transformation from a single-brand structure to a “true multi-brand enterprise”. In addition, the group's operating income for the first half of the year was US$992 million, a year-on-year increase of 22%. Gross profit was US$3.853 billion, a year-on-year increase of 25%. The gross profit margin was 65.5%, a decrease of 3.1 percentage points year-on-year. For each brand, the main brand for Coach's sales in the first half of the year was 4.22 billion US dollars, accounting for 72% of the total, an increase of 3% over the same period last year. The number of global direct stores reached 987. Kate Spade had sales of $1.28 billion in the first half of the year and 342 global direct stores. Stuart Weitzman had sales of $374 million and 103 global direct stores.

The group's 2019 priority strategy was announced in the financial report, which included strengthening the interaction between brands, accelerating innovation within the brand, and strengthening the leading position in digital and data analysis. Special mention is also given to maximizing the opportunities for Chinese guests to interact with said brands in the world.