Tapestry Logs $227 Million Profit; Raises Full-year Guidance – WWD

Tapestry Inc. continues to make gains in the post-pandemic fashion panorama. 

The fashion group — mum or dad to the Coach, Kate Spade and Stuart Weitzman manufacturers — reported quarterly earnings Thursday earlier than the market opened, enhancing on the highest and bottoms strains due to energy in North America, China and on-line. The corporate raised its full-year steering consequently, inflicting shares to shoot up greater than 5 p.c in pre-market hours.

“We delivered one other quarter of strong efficiency, reflecting sturdy buyer engagement and elevated demand for our manufacturers,” Joanne Crevoiserat, chief executive officer of Tapestry, mentioned in an announcement. “Importantly, income tendencies accelerated in comparison with pre-pandemic ranges pushed by North America, in addition to continued development in digital and China ​​— two key drivers of long-term alternative. Tapestry’s standout outcomes spotlight our groups’ extraordinary execution and the foundational adjustments we’ve made to remodel right into a extra consumer-centric, data-driven and responsive group by way of the pillars of our Acceleration Program.

“Total, this efficiency reaffirms our conviction in our capacity to gasoline continued income and revenue beneficial properties,” she continued. “Whereas provide chain challenges persist because of the international pandemic, we’re remaining agile and taking deliberate actions to satisfy rising shopper demand. The incremental share repurchase program introduced at present additional underscores our confidence within the energy of our manufacturers and our capacity to drive sustainable development. Taken collectively, we’re growing our income and [earnings-per-share] outlook for the fiscal yr, reflecting our first quarter efficiency and powerful underlying enterprise tendencies. We stay sharply targeted on accelerating development and profitability and are dedicated to creating worth for all stakeholders.”

For the three-month interval ending Oct. 2, Tapestry’s complete revenues elevated 26 p.c to $1.48 billion, up from $1.17 billion the identical time final yr. 

At Coach, the corporate’s largest model, complete gross sales had been greater than $1.1 billion for the quarter, up from $875 million the identical time final yr. Kate Spade had $299 million in gross sales, in contrast with $240 million final yr, whereas Stuart Weitzman registered $66.5 million in revenues, in contrast with $56.4 million in revenues throughout final yr’s first quarter.

Tapestry’s gross sales in North America grew greater than 40 p.c through the quarter, in contrast with a yr earlier. In Mainland China, revenues elevated 25 p.c throughout the identical time interval. 

The agency additionally had continued energy in its digital channels, with income development of almost 50 p.c, in comparison with the identical time final yr, and up 275 p.c in contrast with pre-pandemic ranges. 

Tapestry logged almost $227 million in earnings consequently, in contrast with about $232 million a yr earlier. 

The corporate elevated its full fiscal 2022 outlook consequently. The retailer now expects revenues for the total yr to be about $6.6 billion, up from the earlier outlook of $6.4 billion, and earnings-per-diluted share within the vary of $3.45 and $3.50 a share, up from its prior steering between $3.30 and $3.35 a share. 

Tapestry has greater than 1,400 brick-and-mortar shops throughout its three manufacturers world wide, and ended the quarter with $1.65 billion in money, money equivalents and short-term investments, in addition to $1.19 billion in long-term debt. 

Shares of Tapestry, which closed up 0.33 p.c Wednesday to $42.61 apiece, are up about 68 p.c, year-over-year.