In the fiscal first quarter ended on Sept. 26, Stuart Weitzman posted net sales of $56 million, down by 35 percent from $87 million in the same period of the prior year. Nevertheless, sales exceeded the company’s expectations and marked a sharp improvement from the previous quarter, when they stood at $33 million.
The brand, which is owned by the American group Tapestry, saw its retail sales underpinned by the Chinese market and online sales, while wholesale revenues benefited from early shipments. Its American e-commerce platform recruited more than 40 percent in additional clients compared with the previous year.
Stuart Weitzman booked a gross profit of $31 million, representing a gross margin of 55.3 percent, as compared to $45 million and 52.5 percent, respectively a year earlier.
Selling, general and administrative (SG&A) expenses were $31 million and represented 55.2 percent of sales. On an adjusted basis, SG&A costs reached $34 million or 59.5 percent of sales. The brand’s operating profit was at breakeven versus an operating loss of $19 million a year earlier. On an adjusted basis, Stuart Weitzman registered an operating loss of $2 million against a loss of $10 million.
For the current quarter, the company is focusing on boots, booties and sneakers as well as expanding the use of its Lift lug sole across assortments to respond to growing demand for casual shoes.
In the first quarter, Tapestry, which also owns the brands Coach and Kate Spade, posted a 17 percent drop in sales to $1.17 billion. The net income surged to $232 million on a reported basis from $20 million a year earlier. On an adjusted basis, net income was $161 million against $114 million.
Tapestry also appointed Joanne Crevoiserat as chief executive officer. She had been serving as interim CEO since July 2020, after having joined the group as chief financial officer in August 2019.