Coach Signature handbag
Source: Coach
Coach and Kate Spade’s owner, Tapestry, is seeing signs of consumers celebrating love again, meeting up with friends and going back to offices.
“We’re starting to see where people have postponed weddings for over a year – some of these life events – people are coming out and re-engaging in the real world,” CEO Joanne Crevoiserat said in an interview on Thursday.
According to Crevoiserat, tapestry, which includes Stuart Weitzman, is quickly replenishing merchandise in the bridal category. More and more shoppers are looking for more elegant heels and clutch bags for events like weddings and showers.
“But it’s all about balance,” said the CEO. “We’re also introducing novelties to the recreational industry. We see positive signs and encouraging signs of recovery as vaccination efforts advance.”
Coach President Todd Kahn said another major opportunity for the brand in the coming months is selling back-to-work bags to buyers large enough to hold laptops, tablets, planners, and other office supplies.
“In North America in particular, we see two options when it comes to the return of the consumer,” explained Kahn. “One is the bag I need for work that I haven’t replaced in a year and a half. And then this fun bag for going out.”
Tapestry reported sales and earnings for the third quarter that exceeded analyst estimates, driven by digital growth and demand for luxury goods in China. In North America, sales returned to pre-pandemic levels.
However, in the early afternoon of Thursday’s trading, Tapestry shares fell around 4% as total sales remained below 2019 levels. The retailer has not yet offered an outlook for the full year.