Coach-owner Tapestry Inc is taking a series of steps to preserve cash and maintain ample liquidity as the coronavirus outbreak continues to impact its global operation.
The group said it has extended store closures in North America and Europe through 10 April in a bid to protect the health and safety of its employees, customers and communities. Store closure decisions will continue to be assessed on a bi-weekly basis.
Across all three of its brands – Coach, Kate Spade and Stuart Weitzman – nearly all of its stores in China have re-opened with customers gradually returning to shop. Elsewhere in Asia, the majority of stores are operating on shortened hours.
The group said it is suspending its quarterly cash dividend for the fourth quarter and suspending its share repurchase programme. In addition, it is reviewing every opportunity to eliminate non-essential operating expenses while reducing capital expenditures and tightly managing inventories.
“Out of an abundance of caution, we have acted to augment our strong liquidity and reinforce our financial flexibility,” said Jide Zeitlin, chairman and CEO of Tapestry. “We have an 80-year history of successfully navigating external crises. Our three brands are powerful and resonate deeply with consumers globally. This, along with the resilience of our teams, underscores our confidence in the future.”
It will provide an update on the operational and financial impacts of the coronavirus outbreak on 30 April.
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