On Tuesday’s conference call, Tapestry disclosed several strategies for overseas distribution channels: They regained control of Kate Spade’s operations in Greater China and acquired Stuart Weitzman’s operations in northern China from agents.
The group stated that these measures are to strengthen their control over China’s distribution channels. In addition, they will also acquire Coach’s business in Australia and New Zealand to increase the overall efficiency of the Australian market. It is expected that the transaction will be completed in the third quarter of the fiscal year. . According to Victor Luis, CEO of Tapestry, they may further acquire more regional businesses from distributors in the future. He said: “Stuart Weitzman’s business in South China is a very good potential acquisition target. Other countries in Southeast Asia, such as Indonesia and Thailand, are also the targets we are considering.”
Luis also mentioned that Coach Create, a high-end custom service launched by the company, performed very well and will be promoted to more stores in the future. Currently, only 32 of Tapestry’s stores offer this service, and it is expected that this number will increase to 250 by the end of the year, accounting for 40% of the total number of stores.