Tapestry extends store closures, suspends dividend and share repurchase

Tapestry, Inc., owner of Coach, Kate Spade and Stuart Weitzman brands, has decided to extend store closures in North America and Europe for an additional two weeks through April 10, 2020. The company has announced that it will be donating 15,000 masks to hospitals in the US, the UK and Spain, with additional masks expected to be delivered in April. The company is also suspending its quarterly cash dividend beginning in the fourth quarter of fiscal 2020 and its share repurchase program.

“In this period of unprecedented volatility, we are focused on our stakeholders, including our employees and stockholders. We are taking immediate steps to support our employees and local communities. In addition, out of an abundance of caution, we have acted to augment our strong liquidity and reinforce our financial flexibility,” said Jide Zeitlin, Chairman and Chief Executive Officer of Tapestry, Inc.

Commenting on the financial health of the company, Tapestry said it closed calendar 2019 with 1.2 billion dollars in cash and short-term investments. In order to preserve cash and pre-emptively ensure that the company maintains ample liquidity, Tapestry has decided to draw down 700 million dollars from its 900 million dollars revolving credit facility to add to cash balances.

Picture:Facebook/Kate Spade New York

 

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