Coach and Kate Spade owner Tapestry (NYSE:TPR) reported a narrower-than-expected loss on Thursday, as strong online sales helped offset the impact of closed stores during the coronavirus pandemic.
The company said it will reduce expenses and focus on digital growth as part of a turnaround plan. It said e-commerce sales shot up by triple digits versus the prior year.
In the fourth fiscal quarter, Tapestry reported losses per share: 25 cents, adjusted vs. the expected 57 cents. Revenue registered $714.8 million vs. the forecast $663 million.
Tapestry reported a net loss of $293.8 million, or $1.06 per share, compared with a profit of $148.9 million, or 51 cents a share, a year ago.
Net sales dropped to $714.8 million from $1.51 billion a year ago.
Coach sales fell 53%, while sales at Kate Spade dropped 51%, and sales at its Stuart Weitzman brand plunged 61% during the quarter.
The company reported hopeful signs, however, that could bode well for its future. It said it returned to positive year-over-year sales growth in Mainland China. It also reopened the majority of the stores it operates across the globe.
The company committed to speeding along a turnaround plan. It said it will become leaner, more focused on its e-commerce business and appeal to consumers in new ways to drive up sales for Coach, Kate Spade and the Stuart Weitzman. It estimated it will reduce expenses by about $300 million, including $200 million projected in fiscal 2021.
TPR shares dropped two cents to $15.58.
