Tapestry, Inc., a leading New York-based house of modern luxury accessories and lifestyle brands, reported results for the fiscal third quarter ended 28th March, 2020.
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Jide Zeitlin, Chairman and Chief Executive Officer of Tapestry, Inc., said, “We entered the calendar year with strong underlying momentum. As the novel coronavirus expanded across the globe, our results materially weakened. In navigating this unprecedented crisis, we are guided by our values and have continued to prioritize our community – our people, their families, and our customers. I am incredibly proud of our teams around the world and the resilience they have shown in facing events that have impacted every aspect of how we live our lives and manage our business.”
During the quarter, 90% of Tapestry’s stores were either closed or operating on shortened hours. There is a degree of normalcy return in certain areas first impacted, including Mainland China and Korea, and expect to apply lessons learned as, over time, additional countries and regions reopen.
In China, approximately 90% of stores on the Mainland were closed as of early February. By the end of the quarter, the vast majority of stores had re-opened, though traffic remained muted. As of mid-April, all stores were open and we have continued to experience a gradual improvement in the business week-to-week.
In North America and Europe, all stores were closed as of mid-March and the vast majority remain closed. However, beginning on 1st May, in accordance with state and local guidelines, utilizing heightened health and safety precautions, the company will reopen approximately 40 stores in North America for contactless curbside or storefront pickup service only.
In Europe, five locations are opened in Germany and Austria. The company is planning a phased approach to welcome shoppers back into safety enhanced stores where teams will be equipped with gloves and masks, offer sanitizers and wipes at the cash wrap, and limit the number of customers to align with recommended social distancing practices.
The vast majority of stores in Japan were operating on shortened hours as of mid-March. As of mid-April, all stores were closed in compliance with local government requirements.
The majority of stores in South Korea were operating on shortened hours as of mid-March and as of early April, all stores had resumed normal operating hours.
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In other markets in Asia Pacific, the majority of stores in Malaysia, Singapore, Australia and New Zealand were operating under shortened hours as of mid-March and by early April were closed. Most remain closed today, however, in Australia, Tapestry has reopened twelve locations.