The US fashion group Tapestry Inc. closed the 2021/22 financial year with strong growth in sales and profits. CEO Joanne Crevoiserat was correspondingly satisfied: the company had achieved “outstanding results”, praised the CEO in a statement published on Thursday. The pace of growth has increased across the portfolio, which includes the Coach, Kate Spade and Stuart Weitzman brands.
In its most recent fiscal year, which ended on July 2nd, Tapestry generated consolidated sales of a new record of US$6.68 billion (€6.59 billion). This exceeded the previous year’s level by 16 percent (currency-adjusted +17 percent). Adjusted for the effect of the additional sales week in 2020/21, sales rose by 18 percent.
All three Group brands contributed to the clear increase in sales with double-digit increases. Coach revenue was up 16 percent to $4.92 billion, Kate Spade was up 20 percent to $1.45 billion, and Stuart Weitzman was up 12 percent to $317.7 million .
Further increases are expected for the current financial year
Operating profit rose 21 percent to $1.18 billion thanks to a higher operating margin. Because the group had to post one-time charges as part of the debt repayment, among other things, the reported net profit grew by only three percent to 856.3 million US dollars (844.8 million euros). However, adjusted for special effects, net income increased by 15 percent to USD 936.5 million.
The fashion group intends to continue growing in the current financial year: a sales increase of three to four percent (currency-adjusted six to seven percent) to around 6.9 billion US dollars is forecast. Diluted earnings per share, which were $3.17 in the just ended fiscal year, are expected to increase to between $3.80 and $3.90.