2018 Top 100 Retailers Power Players: Jewelry/Accessories

2018 Top 100 Retailers Power Players: Jewelry/Accessories

https://stores.org/2018/06/28/2018-top-100-retailers-power-players-jewelry-accessories/

 

〈Kors〉

Tapestry was woven together by Victor Luis, chief executive of Coach Inc., which acquired the Stuart Weitzman shoe brand in 2015 and handbag and clothing firm Kate Spade in May 2017. The corporate name was changed from Coach to Tapestry amid visions of becoming an American version of the luxury goods manufacturer and retailer LVMH Moët Hennessy Louis Vuitton: The three brands’ synergy was designed to compete against such labels as Michael Kors and Vera Bradley, not to mention all the brands in the LVMH stable. As he had done with Coach a few years ago, CEO Luis narrowed distribution channels and cut back on promotional sales of Kate Spade and Stuart Weitzman merchandise.

 

“As Tapestry pulls back on wholesale distribution and reduces flash sales, revenue is bound to suffer. Nevertheless, we support the strategic direction and believe that this corrective action is ultimately necessary to strengthen the brand,” says Neil Saunders, analyst and managing director at GlobalData Retail. The moves have hurt performance in the short term: Kate Spade same-store sales plummeted 9 percent this spring, while production delays and soft sales of older shoe styles hammered Stuart Weitzman’s profitability. In explaining some of the problems at Stuart Weitzman, Luis says, “While we are very proud of our team in Spain, it does lack the processes and the systems to deal with a level of complexity and innovation that the teams need and want to deliver.”

 

Tiffany enjoyed a buoyant holiday season last year and slumped early this year, hardly an unusual pattern for a fine jeweler. Reflecting an industry-wide trend, sales of engagement rings slowed at Tiffany during 2017; it was partially offset by the popularity of its “home collection” that include $350 gold crazy straws and $9,000 sterling silver balls of yarn. Such everyday objects are part of Tiffany’s “more distinctive newness,” says chief executive