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Tapestry says Coronavirus could cost it $250 million

Luxury group Tapestry, the parent group of Coach, Stuart Weitzman and Kate Spade, has said the outbreak of the Coronavirus in China is already affecting its business there.

On announcing its results for the second quarter of its current business year, the period ending December 28, Tapestry said it had achieved revenues of just over $1.8 billion, an increase of 1% compared to the same quarter a year earlier.

It said it had experienced “strong growth” in China over the three-month period, but that since then, with the Coronavirus restricting consumers’ work, travel and shopping, the situation had changed.

Chief executive, Jide Zeitlin, said: “The escalating Coronavirus outbreak is now significantly impacting our business in China, resulting in the closure of the majority of our stores. We now expect that our second-half results could be negatively impacted by approximately $200-$250 million in sales given current trends in China. If the situation further deteriorates, or the outbreak affects demand outside the country, this impact could be worse.”

Image: Stuart Weitzman.



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