Tapestry, owner of Stuart Weitzman footwear brand, reported a decline in shoe brand sales in the fourth quarter. Stuart Weitzman's fourth-quarter net sales fell 4% to $13 million from $62,6 million in the same period last year.
For the full year, the brand's net sales were down 11% to $281,6 million, compared to $317,7 million in 2022.
Tapestry's company-wide net sales for the fourth quarter were $1,62 billion, in line with the same period last year. For the entire fiscal year, Tapestry recorded net sales of $6,66 million, up from $6,68 million in 2022. The numbers come a week after the company closed the deal to acquire Capri.
Analysts note that Stuart Weitzman and Kate Spade, who are part of the Tapestry portfolio, are not showing very good results. And the Coach brand is doing relatively well.
Analysts criticized the Weitzman range: "Despite some interesting collections at the beginning of the year, such as the collaboration with KidSuper, the products were a bit modest and not eye-catching enough."
Stuart Weitzman CEO Joan Crevoisera attributed the weakening brand sales to external factors complicating business in China and North America. She noted that Stuart Weitzman low-cut pumps and ankle boots continue to perform well in line with consumers' transition to casual and office wear. In particular, Crevoiserat noted that the SoHo and Stuart collections of the brand were the best in the fourth quarter.
Going into 2024, the company will focus on driving growth in core and iconic brand categories and adding depth to under-researched categories with high growth potential, she said. We are talking about the launch in the second quarter of 2024 of an expanded range of sneakers and flats.
Tapestry plans to accelerate the brand's growth in China and expects to capitalize in the new fiscal year on the recovery of this "high-margin region", which accounted for almost 40% of Stuart Weitzman's FY2021 sales.