The luxury resale market has become a popular way for budget-conscious shoppers to get the hottest brand name products for a discount, but luxury brand Tapestry Inc., which is home to brands including Coach, Kate Spade and Stuart Weitzman, showed that some people still prefer first-run items.
Tapestry noted a double-digit growth in all of its brands for the third quarter of fiscal 2022, which ran for three months up to April 2, and 13% overall revenue growth, according to the company press release Thursday (May 12).
The company also saw its digital sales climb more than 20% year over year for Q3 and achieved revenue growth of 22% in North America, offsetting a mid-teens percentage decline in China.
Tapestry also reported more than 1.4 million new customers both in-store and online in North America through its Acceleration Program, a mid-teens year-over-year increase. The company said it made emotional connections with customers that led to a higher average spend, increased repeat transactions and more customers coming back.
The company made “significant investments” in its digital capabilities, including hiring new employees to drive higher conversion rates, with expectations of $2 billion in revenue through the channel in the fiscal year, or 30% of total sales.
Related: The RealReal Says Luxury Is ‘Tremendously Resilient’, Inflation Driving ‘Strong Year’
Earlier this week, luxury resale platform The RealReal said rising prices and tight supply for designer goods are pushing more buyers and sellers into the secondhand market, adding that the 11-year-old firm was well-positioned to have a “strong year” as a result of rampant inflation.
Active buyers for The RealReal rose 21% to 828,000, and orders rose 27% to 878,000 versus a year ago, but the company said its $487 average order value was up just 3%.
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