Coach parent Tapestry group pays more attention to China’s market development. Tapestry’s financial year 2018 earnings report showed that the group’s annual sales rose 31% to $5.88 billion from a year earlier, and net profit plunged 32.7% to $397 million from a year earlier as one-time costs such as the acquisition of Kate Spade increased.
Victor Luis, CEO of the group, said in a conference call that the group would focus on expanding Kate Spade’s business in China and would also increase its advertising investment in the core brand Coach.
As of June 30, the annual sales of Tapestry’s core brand Coach grew by 3% to $4.22 billion from a year earlier, up 1% from a year earlier in global stores, mainly due to the growth in global e-commerce sales; the newly completed acquisition of Kate Spade had sales of $1.28 billion, reduced wholesale business and electricity merchants. Sales of Stuart Weitzman were $374 million, the same as last year. The group said in its earnings report that it expects sales in fiscal 2009 to grow by a median of $61 to $62 billion from a year earlier.