Coach owner Tapestry (NYSE:TPR) reported Thursday a nearly 20% drop in quarterly sales, as the coronavirus pandemic forced 90% of its stores either shut or to operate on reduced hours during the period.
Chief Executive Jide Zeitlin said the crisis materially weakened the retailer’s results during the period. "No one is immune to the effects of this 100-year storm," he said.
The company also Thursday laid out its reopening strategy. Starting Friday, it will reopen roughly 40 shops in North America for curbside pickup. Tapestry said it plans to use a phased-in approach to bring shoppers back to stores, and it will provide gloves and masks to store workers.
The company said it has already opened back up most of its stores across China and South Korea.
Earnings per share came in at a net loss of $2.45, on revenue of $1.07 billion
Tapestry reported a net loss of $677.1 million, or $2.45 per share, compared with a profit of $117.4 million, or 40 cents a share, a year ago.
Excluding special items, the company lost 27 cents per share.
Net sales dropped to $1.07 billion from $1.33 billion a year ago.
Analysts had been calling for a loss of 12 cents per share, adjusted, on revenue of $1.03 billion. However, it is difficult to compare reported earnings to analysts’ estimates due to the coronavirus pandemic, which continues to hit global economies and makes earnings impact difficult to assess.
Coach sales fell 20%, while sales at Kate Spade dropped 11%, and sales at its Stuart Weitzman brand plunged 40% during the quarter.
Shares sank $1.71, or 10%, to $15.33
Related Stories
