Business

US multinational Tapestry shows its growth strategy

Tapestry, the US multinational luxury fashion company that incorporates the Coach, Kate Spade and Stuart Weitzman brands, has achieved record sales of $6.7 billion, an increase of more than 15% over the previous year or 11% over pre-pandemic fiscal 2019 levels.

Eva Morletto

By Eva Morletto12 septembre 2022

Tapestry's brand Kate Spade was founded in 1993 and has net sales of 1.2 billion (Tapestry)

Each brand is expected to show remarkable growth by 2025: Coach is expected to reach $5.5 billion, while maintaining a 30% operating margin. Kate Spade's compound annual growth rate (CAGR) - the rate of return that would be required for an investment to grow from its initial balance to its final balance - is expected to be $1.9 billion over three years. Stuart Weitzman's revenue growth is expected to reach a double-digit CAGR over three years at $450 million.

Joanne Crevoiserat, Tapestry's CEO, expressed confidence in the company's ability to generate stable and sustainable earnings and set out the four pillars on which the company's strategy should be based in the coming years. The US company will focus on retaining new customers: in 2022, it managed to recruit around 7.7 million new customers across channels in North America, an increase of 10% on the previous year, with growth both in shops and online. It will also focus on creating innovative fashion with an increased focus on trends and leveraging manufacturing excellence, especially in small leather goods, timeless bags, shoes and lifestyle accessories.

At the heart of Tapestry's ambitions are omnichannel retail experiences. The US firm intends to achieve leadership in this area, which could lead to growth online and in shops and a larger, competitive presence internationally. In 2022, Tapestry reached $2 billion in online sales revenue during the year, representing 30% of total sales.

Today, the multinational's main markets are the US and China, but Joanne Crevoiserat is looking closely at the European market and South East Asia. Under the leadership of this innovative businesswoman, Tapestry has been named one of "America's Most Responsible Companies" by Newsweek, "Best Employers for Diversity" and "Great Place to Wok" by Forbes.

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