As the coronavirus pandemic continues to weigh on cities around the world, Tapestry is extending its store closures across North America and Europe — but its operations in China are back up and running.
In a statement today, the company — parent to Coach, Kate Spade and Stuart Weitzman — announced that it would keep closed its outposts in the two regions for another two weeks through April 24.
On the other side of the world, “essentially all” three of its brands’ stores in China have reopened, with Tapestry adding that “results are slowly and steadily improving.” Similarly, in South Korea, all stores have resumed normal operating hours.
“Tapestry will continue to assess operations location by location, in accordance with the guidance of local governments and global health organizations to determine when operations can safely begin returning to business,” the fashion group added.
Tapestry’s stores in the Asia-Pacific region — including those in Malaysia, Singapore, Australia, New Zealand and in some prefectures in Japan — have been closed over the past few weeks. However, most of its global distribution centers continue to do business, with only one center in Malaysia and a third-party facility in New Jersey temporarily closed.
As previously announced, employees at closed Coach, Kate Spade and Stuart Weitzman locations are still receiving pay and benefits. Tapestry added that it would provide an update on the impact of the coronavirus on its business during its third-quarter conference call scheduled for April 30.
In late March, the fashion group made the decision to draw down $700 million of its $900 million revolving credit facility to add to its cash balance. It has suspended its share repurchase program and will suspend its quarterly cash dividend beginning in the fourth quarter.
Tapestry is also “reviewing every opportunity to eliminate non-essential operating expenses, while reducing capital expenditures and tightly managing inventories.”
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