Positive signs and extreme caution: this is how we can summarize the results of the American listed fashion and cosmetics companies. The case most linked to accessible luxury is that of Tapestry , which has the Coach, Kate Spade and Stuart Weizman brands in its portfolio. Fiscal fourth quarter revenue reached $ 1.6 billion, up 1% over the same period last fiscal year and 7% over 2019. For the full fiscal year, Tapestry reached $ 6.7 billion. billion dollars in revenues (+ 15% from last year and + 11% from pre-pandemic levels for fiscal 2019. Net income for the quarter was 197 million dollars with earnings per share of 78 cents . Tapestry expects revenues from fiscal 22-23 to increase between 3 and 4% (in the photos above, three looks from the Coach fashion show for autumn-winter 22-23).
China worries Estée Lauder
Strong growth also for the Estée Lauder cosmetics group , which closed its fiscal year with net sales of $ 17.74 billion (about € 17.5 billion), up 9% from $ 16.22 billion (about € 16 billion). The company, listed in New York, which he is thinking of buying Tom Ford for a billion dollars , recorded a net profit of $ 2.39 billion (€ 2.35 billion), up 21%. In Asia, however, the pandemic continued to weigh on turnover, which in the region lost 20% compared to last year. Looking at performance by business unit, skin care recorded an increase in net sales in the Americas, offset by a decline in the EMEA region. The sales growth of La Mer, Clinique and Bobbi Brown was offset by a decline in Estée Lauder. However, the high single-digit growth in the first nine months of the fiscal year was offset by the negative impact of covid restrictions in China in the fourth quarter. Instead, net sales of make-up increased for most brands, thanks to the steady recovery in Western markets resulting in increased use opportunities. Growth was driven by increases in Mac and Estée Lauder. «We are very confident in the strength of our company and in the lively long-term growth opportunity of the beauty sector, but we recognize that the environment remains complex and uncertain at the moment – commented Fabrizio Freda, president of Estée Lauder -. For fiscal year 2023, we expect strong organic sales growth, fueled by our diversified growth engines and enticing innovation. “
The Kohl’s case and large retailers
Kohl’s, a US chain of department stores, has instead registered a decline in revenues in the three months to 30 July 2022 , down 8.1% to $ 4.09 billion from $ 4.45 billion in the same period last year. Net sales and comparable sales decreased by 8.5% and 7.7%, respectively. Gross margin was 39.6%, down from 42.5% in the same period of 2021.
Earnings fell 63% to $ 143 million, while earnings per share fell 55% to $ 1.11. “The results of the second quarter were influenced by the weakening of the macroeconomic environment, by high inflation and by the reduction in consumer spending, which put pressure above all on our middle-income customers – commented the CEO Michelle Gass – We have adapted our plans, implementing actions to reduce inventories and reduce expenses to take into account a weaker demand outlook ». The company has cut its financial outlook again for the full year 2022. It now expects: net sales down between -5% and -6% from the previous year (0-1% growth range previously); operating margin between 4.2% and 4.5%; earnings per share between $ 2.80 and $ 3.20, excluding any non-recurring expenses (versus a previous estimate of $ 6.45 to $ 6.85).
The tow of beauty, the partnership with Sephora is strengthened
On the day of the announcement of the accounts, August 18, Kohl’s also made official a strengthening of the agreement with Sephora , a chain of cosmetics stores of the French giant Lvmh. Since the start of the partnership a year ago, 200 Sephora “shop-in-shops” have been opened in as many Kohl’s stores, which will now be expanded in terms of square footage.