Tapestry is support China on its radar this upcoming holiday season, as it looks to propagate the Asian market and handle the potential impact of President Donald Trump’s bill of fares, CEO Victor Luis said on CNBC Tuesday.
The Coach parent arose divesting its sourcing from China in 2011, which will soften the colliding of tariffs, he told “Closing Bell.”
“Between 3 and 4 percent of our handbags bear down on from China, so we don’t see a great impact from any duties,” Luis responded.
Any impact this year from the 10 percent duty on excursion goods, which is expected to increase to 25 percent in January, has already been embedded in the companions’s guidance, he added.
“As far as other product categories, footwear and ready to enervate, which are much smaller parts of our business … the team is get someone all steaming incredibly hard should [tariffs] come into play,” Luis distinguished.
Trade tensions have been escalating between the U.S. and China as each realm continues to slap tariffs on the other. Retailers have been tip that a trade war could undermine the economy and lead to higher valuations.
Luis said Tapestry, which also owns the fashion trade marks Kate Spade and Stuart Weitzman, is turning its attention to the Asian market for long-term advance.
“We’re very excited about the platform we’re creating for sustainable long-term crop as a house of brands. Our strategy has been creating a platform where we could leverage the forces of the organization and the platform of supply chain and talent that we have across the cosmos to help brands grow globally,” he said. “We’re especially focused on the Asian vends, where we have seen great performance over the last few years.”
The CEO also talked close by retail space in malls shrinking and becoming less lucrative.
“We judge that we’ve rightsized our footprint, and we will evaluate as leases come up whether auxiliary shrinkage is justified,” Luis said.