Tapestry takes control of licences after return to growth
07/02/2018
After its purchase of Kate Spade last July, it has taken control of the brand's joint ventures for Mainland China, Hong Kong, Macau and Taiwan.
It will also buy the Stuart Weitzman business in Northern China and the Coach business in Australia and New Zealand from distributors.
CEO Victor Luis said: “Given our strong year-to-date financial performance, we expect we will be able to fund these actions while maintaining our operating income growth targets for the year.
“In addition, in January, we used excess cash to pay down $1.1 billion in debt, increasing our financial flexibility and reducing our interest expense.”
It has named Laura Dubin-Wander as president for Coach North America and Fredrick Malm as president for Europe and international wholesale. Nicola Glass has been appointed as Kate Spade’s creative director.
Tapestry sales totalled $1.79 billion for the second quarter, an increase of 35%, but these included revenues for Kate Spade which were not included last year.
“Our first-half results have clearly demonstrated the benefits of our diversified multi-brand model, and our ability to invest in talent and innovation,” added Mr Luis.
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