Kate Spade Handbags
Scott Mlyn | TBEN
Women are spending more money when shopping for handbags during the coronavirus pandemic, according to the latest quarterly results from the owner of Coach Tapestry.
And that could be in part because consumers are buying larger, more expensive bags to store bottles of Clorox hand sanitizer and wipes.
“I don’t know about you, but carrying around 20 pounds of Covid product in a small cross-body just won’t work,” said Stacey Widlitz, head of SW Retail Advisors. “Big bags are back. … It’s about carrying your life in your bag.”
Tapestry, which also owns the Kate Spade brand, said Thursday that its revenue per handbag globally grew by more than 25%, on average, in the first fiscal quarter, which consisted of growth of more than 20% in North America.
Management explained that the gains were largely fueled by the handbag maker which reduced its promotions, thereby selling more items at higher prices.
It also reduced its dependence on wholesale partners, such as department stores, which in the past weighed on profits.
“We focus on driving [average unit revenue] by being close to our consumers and delivering products that our consumers appreciate, ”CEO Joanne Crevoiserat told analysts.
Tapestry shares rose over 9% in pre-market trading.