Tapestry reported a 2 percent decline in sales to USD 1.59 billion in the fourth quarter, with gains in Europe offset by Greater China and Japan.
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The owner of Coach, Stuart Weitzman, and Kate Spade brands, said sales in Greater China plunged 13 percent to USD 232 million in the quarter, alongside a 9 percent decline in Japan, to USD 127 million. The New York-based company’s othe Asia segment, made up of Malaysia, Australia, New Zealand, South Korea, and Singapore, saw a 9 percent uptick in sales to USD 86 million during the three months ending June 29.
Elsewhere, European sales rose 26 percent, offset by a contraction in the firm’s largest market, North America, down 1 percent.
By brand, global Coach sales were flat at USD 1.3 billion, weighed down by a 19 percent decline at footwear brand Stuart Weitzman, and a 6 percent sales dip at Kate Spade.
Quarterly net income dropped to USD 159 million, with earnings per diluted share of USD 0.68, compared to net income of USD 224 million, and earnings per diluted share of USD 0.95, in the prior-year period.
Despite the quarterly sales decline, Tapestry managed to clock a 1 percent sales lift for the full year, to USD 6.67 billion.
“Our fourth quarter results exceeded expectations, capping a successful year. This is a testament to our passionate global teams whose creativity and exceptional execution continue to fuel our brands and business,” said Joanne Crevoiserat, chief executive officer of Tapestry, Inc.
“Importantly, through an unwavering focus on powering innovation and consumer connections, we meaningfully advanced our strategic agenda in fiscal year 2024, delivering strong financial results against a dynamic backdrop. From this position of strength, we have a bold vision for the future and a steadfast commitment to drive growth and shareholder value for years to come.”
Tapestry isn’t alone in its struggle to fight waning demand for luxury goods in Asia, and beyond. Earlier this month, Capri, which Tapestry said it plans to acquire in a USD 8.5 billion deal, reported a 13.2 percent decrease in revenue to USD 1.07 billion for the first quarter.
Last month, luxury heavyweight Kering reported an 11 percent decline in sales for the first half, hindered by slowing interest for its darling Gucci brand, especially in Asia Pacific, while industry bellwether LVMH reported only a 1 percent increase in sales for the first half.