Tapestry, the parent company of Coach, which recently announced the acquisition of Capri Holdings, provided a forecast for fiscal year 2024 indicating lower-than-expected profits and sales. This comes as the company experienced a decline in fourth-quarter results due to weakened demand for its luxury handbags in the United States. Tapestry, along with luxury competitors like Ralph Lauren, Kering, and Canada Goose, highlighted the challenging consumer environment in North America.

The combination of increased living costs and persistent inflation has put pressure on American budgets, impacting companies like Tapestry in the "accessible luxury" market segment. In this segment, customers occasionally purchase goods priced between $300 and $800 but are more sensitive to the cost of essential items.

Coach's popular Tabby handbag, available on the company's U.S. website, is priced at $450, whereas a comparable product from Dior is sold at $3,800.

Photo: www.vogue.co.uk

In the previous quarter, revenues from Tapestry's Kate Spade and Stuart Weitzman brands declined by 10% and 13% respectively compared to the previous year. Analyst Oliver Chen from TD Cowen attributed Kate Spade's weaker performance partly to its higher exposure in the North American market.

Coach, with lesser exposure to the volatile North American market, experienced a 5% growth in sales during the quarter. To leverage this positive momentum, company executives have outlined a strategy to concentrate marketing efforts and inventory management on core products, including the popular Tabby handbag, during the crucial holiday season.

In a post-conference interview, CFO Scott Roe emphasized the significance of managing a consistent supply of evergreen and iconic products that remain in demand. This approach aims to improve operational efficiency and foster stronger customer engagement.

Last week, Tapestry announced its acquisition of Capri Holdings, the parent company of Michael Kors, in a deal worth $8.5 billion. This strategic move reflects Tapestry's ambition to compete against larger European competitors and secure a greater share of the global luxury market.

Tapestry anticipates adjusted earnings per share in the range of $4.10 to $4.15 for fiscal year 2024, slightly below the Refinitiv IBES estimates of $4.24. The company's net sales forecast fell slightly short of expectations. In the fourth quarter ending on July 1, Tapestry reported an adjusted profit per share of 78 cents, which missed the projected 97 cents.

Insider Intelligence analyst Rachel Wolff commented that Tapestry's profitability was somewhat impacted by the strong U.S. dollar, as the company expects more growth to come from overseas. This currency effect is a challenge faced by many U.S.-based brands and retailers.

India's Jasmine: The Fragrant Essence Enriching Global Perfumes

The atmosphere is filled with intoxicating fragrances as skilled harvesters in India delicately pluck white jasmine flowers before their buds fully open. These fresh blooms are then swiftly processed to extract a valuable ingredient used in perfumes worldwide.

Jasmine, known for its potent scent, releases its fragrance primarily during its nocturnal blooming period. Harvesters must carefully select only the buds that have yet to fully open.

"We have the knowledge of which ones to pick," said Malarkodi, who provided only her first name. With a careful snap of her fingers, she skillfully plucks the precious buds, occasionally adorning her hair with a few fully bloomed flowers.

"These already bloomed ones have no use... but I love their scent," she remarked.
For centuries, the aromatic blossoms of jasmine have been revered in India as offerings to the deities, and their captivating scent plays a vital role in renowned perfumes around the globe.

In the ancient city of Madurai, located in southern India, the essence of jasmine is ever-present. This allure attracts buyers from prestigious perfume brands such as Dior's J'adore and Guerlain's Mon Guerlain.

Raja Palaniswamy, a director at Jasmine Concrete, explains that jasmine oil is one of the most valuable oils globally. To obtain a few precious drops of this delightful essence, vast quantities of jasmine flowers are meticulously squeezed.

The women who gather the jasmine buds earn approximately $1.50 per day for picking around four to five kilograms, with each kilogram consisting of roughly 4,000 buds.

Photo: ww.fashionnetwork.com

After being plucked, the freshly harvested jasmine is swiftly transported to the market where it is sold for prices ranging from 200 to 2,000 rupees ($2.40-$24) per kilogram on special occasions.

The jasmine variety found in Madurai, scientifically known as Jasminum sambac, received a "geographical indication" designation from the World Intellectual Property Organization in 2013. This recognition highlighted the distinctive and enchanting fragrance of Madurai jasmine.

"It is luxuriant, opulent, and vivid," remarked Thierry Wasser, the perfumer and "nose" at the esteemed French beauty brand Guerlain, during his visit to the jasmine producers, as he spoke to AFP. Wasser specifically sources jasmine oil from Palaniswamy's company.

In addition to Guerlain, Palaniswamy mentioned that his company supplies jasmine oil to renowned brands such as Bulgari, Dior, and Lush.

H&M says it will "phase out" sourcing from Myanmar

H&M, the world's second-largest fashion retailer, has announced its decision to gradually halt sourcing from Myanmar due to mounting reports of labor abuses in the country's garment factories. Following the footsteps of other major brands like Inditex, the owner of Zara, Primark, Marks & Spencer, and more, H&M has chosen to sever ties with suppliers in Myanmar.

In a statement provided to Reuters on Thursday, H&M explained their rationale, saying, "After careful consideration, we have now taken the decision to gradually phase out our operations in Myanmar. We have been closely monitoring the latest developments in Myanmar and have observed increased challenges in conducting our operations in alignment with our standards and requirements."

On Wednesday, the company revealed its ongoing investigation into 20 reported cases of labor abuse at garment factories in Myanmar that supply their products. This announcement coincided with a UK-based campaign group's statement that instances of alleged abuse, such as wage theft and forced overtime, have multiplied since the military coup that occurred in February 2021.

Photo: ww.fashionnetwork.com

The military takeover has plunged Myanmar into a severe political and humanitarian crisis. The garment industry plays a significant role in the country's economy, employing a majority of female workers who produce clothing and footwear for prominent brands across more than 500 factories.

Certain experts have raised concerns that the ongoing trend of multinational companies withdrawing from Myanmar could potentially leave the local workforce in a more disadvantaged position. Vicky Bowman, the director of the Myanmar Centre for Responsible Business and former British ambassador to the country, expressed regret over H&M's decision, citing the anticipated negative impact it would have on thousands of female workers in Myanmar.

H&M, on the other hand, stated that its withdrawal would align with a "responsible exit framework" devised by IndustriALL, a global union actively advocating for brands to cease their operations in Myanmar.