Workers board a Coach store on Michigan Avenue in Chicago, Illinois, U.S., on Friday, April 3, 2020.
Christopher Dilts | Bloomberg | Getty Images
Coach owner Tapestry reported Thursday a nearly 20% drop in quarterly sales, as the coronavirus pandemic forced 90% of its stores either shut or to operate on reduced hours during the period.
Chief Executive Jide Zeitlin said the crisis materially weakened the retailer’s results during the period. “No one is immune to the effects of this one hundred year storm,” he said.
However, the company also laid out its reopening strategy, igniting some optimism that business will bounce back. It said starting Friday, it will reopen roughly 40 shops in North America for curbside pickup. Tapestry said it plans to used a phased-in approach to bring shoppers back to stores, and it will provide gloves and masks to store workers.
Tapestry shares were up nearly 6% in premarket trading following the release.
Here’s what the company reported for its fiscal third quarter, ended March 28:
- Earnings per share: A net loss of $2.45
- Revenue: $ 1.07 billion
Tapestry reported a net loss of $677.1 million, or $2.45 per share, compared with a profit of $117.4 million, or 40 cents a share, a year ago.
Excluding special items, the company lost 27 cents per share.
Net sales dropped to $1.07 billion from $1.33 billion a year ago.
Analysts had been calling for a loss of 12 cents per share, adjusted, on revenue of $1.03 billion, based on a Refinitiv survey. However, it is difficult to compare reported earnings to analysts’ estimates due to the coronavirus pandemic, which continues to hit global economies and makes earnings impact difficult to assess.
The company said it is not able to forecast fourth-quarter or full-year earnings due to the pandemic.
As of Wednesday’s market close, Tapestry shares are down more than 36% this year. The company has a market cap of about $4.7 billion.
CORRECTION: This story has been corrected to say excluding special items, the company lost 27 cents per share. A previous version misstated that amount.