The US fashion group Tapestry Inc. exceeded market expectations in the second quarter of the 2023/24 financial year. On Thursday, the parent company of the Coach, Kate Spade and Stuart Weitzman brands announced a new sales record. The company also increased its profit forecast for the entire financial year.
In the last quarter, which ended on December 30, consolidated sales reached 2.08 billion US dollars (1.94 billion euros). This exceeded the previous year’s level by three percent both in the reporting currency and after adjusting for exchange rates.
The main growth driver remains the Coach brand
The group once again owed the increase to its core brand Coach, whose sales increased by six percent (+7 percent adjusted for currency effects) to $1.54 billion. In contrast, Kate Spade’s revenue fell by six percent (-6 percent at constant currency) to $460.4 million and Stuart Weitzman fell by four percent (-3 percent at constant currency) to $82.2 million.
Operating profit rose by 7.0 percent to $447.6 million. However, net profit fell by 2.3 percent to 322.3 million US dollars (299.4 million euros) due to higher interest charges. Diluted earnings per share, which were $1.36 in the same quarter last year, rose to $1.39 due to the recent buybacks, also reaching a new record.
Looking at the full year, management was somewhat more optimistic: the forecast for diluted earnings per share was raised from $4.10 to $4.15 to $4.20 to $4.25.