Tapestry CEO Joanne Crevoiserat told CNBC on Thursday that the company saw an increase in demand for a heart-shaped Kate Spade bag that went viral on TikTok last month.
“We were able to take advantage of that. Sell the bag out. We got a restock. We’re learning how to bring that community into better and better,” Crevoiserat said in the interview on “Closing Bell,” after the seller reported a better than – unexpected earnings for his holiday quarter earlier in the day.
Crevoiserat’s comments provide another example of potential social media platforms like TikTok representing for Tapestry and other consumer brands. Its impact seems to be stretching regions, too. For Tapestry, the increasingly popular app sparked sales for its crossbody heartbeat bag while toy companies also saw sales growth linked to TikTok at the time of the pandemic.
TikTok’s potential for logos is perhaps the best example of Walmart’s decision to pursue a minority interest in the U.S. work of the app. The agreement, first announced in September, is yet to come. But in October, Walmart CEO Doug McMillon detailed what TikTok did for the sales giant in an interview with CNBC.
“If you’re watching a TikTok video and you like a piece of clothing or something that someone likes, what if you could buy that thing quickly?” McMillon then said on “Squawk Box.” “That’s what we’re seeing happening in countries all over the world. And it’s exciting for us, and we want to be a part of it.”
Embroidery shares closed higher by 4.6% Thursday to $ 36.18 per apie after the New York-based company beat Wall Street forecasts on the high and low lines. While quarterly sales of $ 1.69 billion were down 7% on a year earlier, it reported a three-digit increase in digital sales worldwide. In addition to Kate Spade, Tapestry owns the Coach and Stuart Weitzman logos.
The company’s stock is up more than 160% since early August and delivered a 52-week high during Thursday’s session.
Crevoiserat said it has been pleased with the way Tapestry set up its e-commerce business in the wake of the pandemic, with customers staying home and shopping more online. . The company’s $ 1.3 billion online sales over the past 12 months are “more than double where we were a year ago,” she said. “We have the capabilities and we are getting better and better at engaging consumers on digital and social channels.”
Embroidery still sees brick-and-mortar locations play a key role even with its online growth, said Crevoiserat, who became permanent CEO in October. She had been an interim since July.
‘We believe that stocks remain important, and we will continue to innovate in our stores,’ she said. ‘We have raised our expectations of productivity and profitability for our store fleet, but we are of the idea that a physical point, that display of the brand in a physical way, is important to consumers. ”