The UK arm of American luxury fashion brands Coach, Kate Spade and Stuart Weitzman plunged into the red after losing more than £60m during its latest financial year, it has been revealed.
Coach Stores Limited posted a pre-tax loss of £64.8m for the year to July 1, 2023, after making a profit of £20.1m in the prior 12 months, according to newly-filed accounts with Companies House.
The loss comes despite the division’s turnover increasing from £92.3m to £97.7m over the same period. The company’s sales had increased by 30 per cent in the prior year.
The Coach brand is the main subsidiary of Tapestry, which is listed on the New York Stock Exchange.
For the same financial year, Tapestry’s net sales totalled $6.66bn while it made a gross profit of $4.71bn.
For the second quarter of its current financial year Tapestry posted a revenue of £2.1bn.
Although Tapestry’s group results were published in July 2023, no financial figures for its UK arm have been revealed until now.
“Price sensitive Kate Spade customers”
Coach Stores Limited said its online sales increased by eight per cent compared to the previous year when they rose by 10 per cent.
The business said the decline in its growth rate was “driven by the more price sensitive Kate Spade customers”.
It added that its main focus for the future is “strengthening existing retail locations and growth in the e-commerce arm of the business”.
The company also said: “Consumer preferences, macroeconomic conditions, foreign currency fluctuations, inflation and geopolitical events continue to impact overall levels of consumer travel and spending on discretionary items, with inconsistent patterns across channels and geographies.
“We will continue to monitor these trends and evaluate and adjust our operating strategies and cost management opportunities to mitigate the related impact on our results of operations whilst remaining focused on the long-term growth of our business and protecting the value of our brands.”
In August 2023, Tapestry agreed to buy Capri, the owner of Versace in a $8.5bn (£6.6bn) deal.