Tapestry, the holding company of renowned luxury brands such as Coach, Kate Spade, and Stuart Weitzman, is proactively addressing the impact of the Covid-19 pandemic on its business operations. With the global economy reeling from the ongoing crisis, Tapestry has decided to extend the closure of all its directly operated stores in North America and Europe for an additional two weeks until April 10th. Despite these closures, the company has committed to providing continued pay and benefits to its employees during this period of uncertainty.
Although the majority of Tapestry’s stores in China have resumed operations, those in other parts of Asia are currently operating on reduced hours. Nevertheless, Tapestry’s e-commerce platforms and distribution centers remain fully operational worldwide, allowing customers to shop online from the comfort of their homes. Following the footsteps of other major retailers like LVMH and Target, Tapestry is stepping up by contributing to Covid-19 relief efforts. The company’s foundations will match employee donations to eligible charitable causes related to the pandemic, with a maximum match of $10,000 per employee.
Aside from supporting charitable organizations, Tapestry is actively involved in donating essential medical supplies to hospitals in the U.S., the U.K., and Spain. Further donations are being planned in the upcoming weeks to aid in the fight against the pandemic. The Coach Foundation, in particular, will be making additional contributions to organizations selected by employees, while both the Coach and Kate Spade New York Foundations are joining hands with partners to assist those who are most vulnerable during these challenging times.
To ensure financial stability amidst the ongoing crisis, Tapestry is implementing various measures to enhance liquidity. The company is drawing down $700 million from its revolving credit facility, suspending its quarterly cash dividend, and exploring avenues to streamline operating costs and manage inventories more effectively. Share repurchases have been put on hold to preserve capital.
Jide Zeitlin, the chairman and CEO of Tapestry, has reaffirmed the company’s commitment to its employees and shareholders during this unprecedented period of uncertainty. Despite the current challenges, Zeitlin remains optimistic about Tapestry’s brands and teams navigating through this turbulent time successfully. Stay tuned for an update on the operational and financial impacts of the pandemic on Tapestry’s global business during the company’s third-quarter fiscal 2020 conference call on April 30, 2020.
For more information on Tapestry’s response to the Covid-19 crisis and its ongoing efforts to support employees, customers, and communities, visit their official website here. Also, to learn more about various relief efforts underway to combat the pandemic and how you can contribute, please visit the Centers for Disease Control and Prevention’s Covid-19 webpage here.
