Kate Spade was just acquired by Tapestry Group in 2017. Although sales in FY 2018 fell by 3% year-on-year and the results were not satisfactory, the brand had a very outstanding performance in the first quarter of FY 2019, with sales up 21% year-on-year. Reaching 325 million US dollars, gross profit margin increased by 36% to 63.8%, and gross profit reached 208 million US dollars.
Victor Luis, CEO of Tapestry Group, said that Coach and Kate Spade’s handbag sales were excellent. Among them, Kate Spade’s new creative director, Nicola Glass, made his debut in the spring and summer of 2019, and received positive media feedback and market response. As a result, Kate Spade’s sales in the first quarter of the 2019 fiscal year have increased significantly.
October 2018 marks the first anniversary of the change in the name of the group. The group name was Coach, Inc., and after the acquisition of Kate Spade, it became Tapestry, Inc. and became a multi-brand company. Luis said that on the first anniversary of the group’s name change, good sales results reflect the benefits of the group’s diversified, multi-brand model.