The US fashion group Tapestry Inc. set a new profit record in the 2022/23 financial year. However, sales development stagnated. This emerges from the current annual report, which the parent company of the brands Coach, Kate Spade and Stuart Weitzman presented on Thursday.
In the past fiscal year, which ended on July 1, group sales were 6.66 billion US dollars (6.10 billion euros) and thus slightly below the previous year’s level (-0.4 percent). Adjusted for exchange rate changes, revenues increased by three percent. Strong growth in international business (+13 percent at constant currency) almost offset a two percent decline in sales in North America.
Only the Coach brand increases its annual sales
The core Coach brand developed positively, with sales increasing by one percent (currency-adjusted +4 percent) to USD 4.96 billion. At the Kate Spade label, revenues fell by two percent to 1.42 billion US dollars, currency-adjusted they were at the level of the previous year. Footwear brand Stuart Weitzman saw sales fall 11 percent (-9 percent at constant currency) to $281.6 million.
Operating income was $1.17 billion, flat year-on-year (-0.3 percent). Net income, which had been burdened by debt repayments in the previous year, grew by around nine percent to USD 936.0 million (EUR 857.6 million). Diluted earnings per share increased 22 percent to a new record of $3.88.
The planned takeover of Capri has not yet been taken into account in the current forecasts
In the foreseeable future, the group is expected to significantly expand its portfolio: Last week, Tapestry announced that it intends to take over competitor Capri Holdings with the brands Michael Kors, Versace and Jimmy Choo for around 8.5 billion US dollars.
However, the effects of the planned transaction, which is to be completed in the coming calendar year, are not yet included in the forecasts for 2023/24 that have now been published. Accordingly, sales growth of three to four percent to around 6.9 billion US dollars is expected. Diluted earnings per share are expected to increase by 6 to 7 percent to $4.10 to $4.15.