US luxury fashion group Tapestry has raised its full-year guidance after beating its own expectations in the third quarter of the year. The New York-based company, which owns the Coach, Kate Spade and Stuart Weitzman brands, reported a five percent increase in net sales to $1.51 billion ($1.38 billion) in the three months ended April 1 Euro).
The company posted strong international sales growth of nearly 20 percent in constant currencies as it benefited from a “stronger-than-expected” recovery in Greater China, which grew about 20 percent. Sales in Japan and the rest of Asia rose 20 percent, while sales in Europe grew four percent. Sales in the Group’s home North American market grew in the low single digits, ahead of expectations.
Q3 ‘well above expectations’
Joanne Crevoiserat, Group CEO, said: “Our strong third quarter results were well above expectations and demonstrate the strength of brand building, customer focus and our agile operating model.”
“We delivered solid revenue gains, increased both gross and operating margins and delivered robust earnings growth. We continued to advance our strategic agenda, creating lasting customer relationships around the world through product innovation and compelling omnichannel experiences – a testament to the ingenuity of our talented teams.”
Tapestry’s net income increased to $187 million in the third quarter, up from $123 million in the same period last year. Looking ahead, Crevoiserat said the group is “well positioned to deliver sustained, profitable growth in a volatile environment.” Tapestry raised its full-year sales and earnings guidance on the back of third-quarter results.
The company now expects fiscal 2023 revenue of $6.7 billion, up from its previous estimate of about $6.6 billion.
This translated post previously appeared on FashionUnited.uk.