search
Glossy Logo
Glossy Logo
Subscribe Login
  • Glossy+ Member Subscribe Now
  • Glossy+ homepage
  • My account
  • FAQ
  • Newsletters
  • Log out
  • Beauty
  • Fashion
  • Glossy+
  • Podcasts
  • Events
  • Awards
  • Pop
search
Glossy Logo
Subscribe Login
  • Glossy+ Member Subscribe Now
  • Glossy+ homepage
  • My account
  • FAQ
  • Newsletters
  • Log out
  • Beauty
  • Fashion
  • Pop
  • Glossy+
  • Events
  • Podcasts
  • Newsletters
  • facebook
  • twitter
  • linkedin
  • instagram
  • email
  • email
Fashion

Tapestry backtracks on its decision to reduce discounting

  • Facebook
  • Twitter
  • LinkedIn
  • Reddit
By Danny Parisi
May 1, 2020
Kate Spade

For years, Tapestry, owner of big mainstream fashion labels like Kate Spade, Coach and Stuart Weitzman, has been making a concerted effort to move away from deep discounts. But coronavirus has forced many fashion brands into less-than-desirable strategies, and each of Tapestry’s brands is now showing heavy discounts on their e-commerce site — up to 75% off on Kate Spade and 30% off at Coach.

In the second half of 2019, Tapestry brands reduced discounting in an attempt to move the company’s portfolio upmarket, according to data from Thinknum. That included instituting a 10% reduction in promotions, which has continued into 2020, and eschewing selling to outlets.  

The recent shift back to discounting is part of what chairman and CEO Jide Zeitlin called a focused effort to “preserve liquidity and [enhance] financial flexibility,” in a press release covering the company’s first quarter earnings on Thursday. Those earnings showed heavy losses, including a more than $670 million loss on the bottom line in the first quarter. 

But heavy discounting, while not a good sign for an upmarket brand’s health, is not the end of the world.

“Brands are currently trying to stay afloat during this pandemic,” said Avery Faigen, retail analyst at Edited. “Discounting, which might not have originally been a strategy for some brands, may be the way they get through this trying time. And that does not necessarily mean a tarnished brand value in the long run.”

Coach was one of the first brands to join Luxury Soho, Chinese e-commerce giant Alibaba’s off-price counterpart to its popular Luxury Pavilion option. Luxury Soho works on a similar principle as Luxury Pavilion, allowing brands to set up their own online stores within Tmall’s larger ecosystem. However, it’s targeted toward brands looking to liquidate inventory at massively reduced prices and with little fanfare.

The service was quietly launched on Apr. 20 and Coach joined on Apr. 25. Not coincidentally, Coach was also the hardest hit of Tapestry’s brands this quarter, losing nearly $200 million. 

While Tapestry did not respond to requests for comment on this story and did not address promotions or off-price retail in any earnings statements, Zietlin did mention promotions in an internal email to staff in mid-March, saying that the company is “exploring  creative  ways  (digital  and  in  stores)  to  meet  demand  and  keep  our customers  engaged  and  abreast  of  product  launches  and  promotions.”

  • Facebook
  • Twitter
  • LinkedIn
  • Reddit
Related reads
  • Member Exclusive
    Glossy Research: Brands are cutting back on ad spending and putting money into influencers and affiliates
  • The Glossy Fashion Podcast
    Glossy Podcast: Victoria’s Secret earnings, Torrid store closures, Disney vs. Midjourney, and luxury’s labor exploitation problem
  • Member Exclusive
    Rebag’s Amazon partnership shows the growing power of retail-resale collaborations
Latest Stories
  • Marketing Playbook
    Exclusive: Why Sol de Janeiro is bringing back one of its most beloved body mists. For now.
  • Glossy Pop Newsletter
    Glossy Pop Newsletter: With its new milky toner, Bubble grows up
  • Member Exclusive
    Glossy Research: Brands are cutting back on ad spending and putting money into influencers and affiliates
logo

Get news and analysis about fashion, beauty and culture delivered to your inbox every morning.

Reach Out
  • Facebook
  • Twitter
  • Linkedin
  • Instagram
  • Threads
  • Email
About Us
  • About Us
  • Masthead
  • Advertise with us
  • Digiday Media
  • Custom
  • FAQ
  • Privacy Policy
  • Terms & Conditions
©2025 Digiday Media. All rights reserved.