- Prachi Singh |
Tapestry, Inc. is closing temporarily closing all directly operated Coach, Kate Spade and Stuart Weitzman stores in North America and Europe to help reduce the spread of COVID-19. The company said, stores will be closed through March 27, at which time it will determine the appropriate next steps in light of the environment. The company added that employees at these locations will continue to receive scheduled pay and benefits during this temporary closure period. In addition, across all regions, brands will continue to engage with customers through online stores, which remain fully operational, and social media.
Commenting on the update, Jide Zeitlin, Chairman and Chief Executive Officer of Tapestry said in a statement: “We are closely monitoring the situation and taking the appropriate actions to protect the safety of our employees, customers and communities. While these are unprecedented times, I am confident the Tapestry team has come together to meet the challenge.”
The company further said, Tapestry’s adjusted fiscal 2020 guidance, as provided in its earnings press release dated February 6, 2020, did not incorporate a negative impact from the coronavirus outbreak beyond China. The company expected an estimated negative impact of the coronavirus outbreak in China of approximately 200-250 million dollars in sales and 35 cents-45 cents in diluted earnings per share. While the majority of Tapestry stores in China have now reopened, there have been additional closures in Asia as well as ongoing traffic challenges throughout the region, which will likely continue for some time.