Tapestry has reported a fall in sales of nearly 20% during its third-quarter as ninety percent of its global stores were either closed or open with reduced hours amid the COVID-19 pandemic.
The parent company of Coach, Kate Spade and Stuart Weitzman also revealed its strategy for reopening stores. Starting today (01/05/2020), Tapestry will reopen approximately forty stores in North America for contactless curbside or storefront pickup service only.
The company is planning a “phased approach” to welcome shoppers back into its stores, which will follow enhanced safety measures. It will provide gloves and masks to employees, offer sanitizers and wipes at the cash-wrap and limit the number of customers in line with recommended social distancing practices.
“The impact of the COVID-19 pandemic transcends near-term results,” stated Jide Zeitlin, Tapestry’s chairman and CEO. “Consumer behaviors are changing and secular trends are accelerating.”
“We entered the calendar year with strong underlying momentum,” stated Zeitlin. “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.”
“No one is immune to the effects of this 100 year storm,” Zeitlin said. “We are taking aggressive actions to assure that Tapestry emerges a strong company when conditions normalize. We have powerful brands with deep consumer connections and a long history of successfully navigating global challenges and macroeconomic shocks. In addition, we have a strong balance sheet, we benefit from a multi-channel international distribution model with only modest exposure to wholesale and a diversified supply chain.”
“Given the dynamic nature of the COVID-19 crisis and lack of visibility, the potential financial impact to our business cannot be accurately projected,” the company stated.
