The US fashion group Tapestry Inc. once again exceeded expectations in the second quarter of 2021/22 and then raised its forecasts for the full financial year again on Thursday. CEO Joanne Crevoiserat concluded: “We delivered record sales in the holiday quarter, noting the turnaround at Kate Spade, continued momentum at Coach and Stuart Weitzman’s return to pre-pandemic sales levels,” she said in a statement.
For the second quarter ended Jan. 1, Tapestry consolidated sales were approximately $2.14 billion. It thus exceeded the corresponding level of the previous year by 27 percent and the comparative value of the pre-crisis year 2019/20 by 18 percent. All of the Group’s brands posted strong year-on-year gains: Coach sales were up 24 percent to $1.53 billion, Kate Spade sales were up 33 percent to $500.4 million, and Stuart Weitzman sales were up 37 percent to $115.8 million million dollars.
Earnings were also above the level of the same quarter of the previous year. Operating profit grew 19 percent to $462.8 million. However, due to special expenditures for debt repayment, the reported quarterly net income increased by only two percent to 317.9 million US dollars (276.7 million euros). Adjusted for one-time factors, it increased by 14 percent to $367.9 million.
In view of the surprisingly good quarterly figures, the group set itself more ambitious goals for the entire financial year: the sales forecast was raised from 6.6 to 6.75 billion US dollars. For diluted earnings per share, management is now targeting $3.60 to $3.65, down from a previous guidance of $3.45 to $3.50.