1. News
May 13, 2022

Tapestry reports 13% net sales rise for third quarter of FY22

The fashion company expects to record revenue of approximately $6.7bn for the full year.

US-based luxury fashion company Tapestry has registered $1.44bn in net sales for the third quarter (Q3) of the fiscal year 2022 (FY22), up by 13% from $1.27bn in the same period of last year.

For the three months to 2 April, the company’s operating income was $169m, against $117m in the prior-year period.

Its operating margin increased to 11.8% in the quarter from 9.2% a year earlier.

Tapestry’s net income on a reported basis grew from $92m in Q3 2021 to $123m, while its earnings per diluted share (EPS) were $0.46, against $0.32 in the prior-year period.

The company’s gross profit for Q3 reached $1.01bn on both a reported and non-generally accepted accounting principles (GAAP) basis, while its gross margin was 69.9%.

Tapestry’s portfolio consists of several luxury accessory and lifestyle brands, including Coach, Kate Spade and Stuart Weitzman.

Sales for the Coach brand increased 11% to $1.07bn from last year, while Kate Spade and Stuart Weitzman recorded growths of 19% and 11% respectively during the quarter.

Tapestry CEO Joanne Crevoiserat said: “Our third-quarter results significantly exceeded expectations led by continued strong growth in North America.

“We drove increased customer demand at Coach, Kate Spade and Stuart Weitzman, reflecting the vibrancy of each of our brands, the power of our platform and our team’s successful execution of our strategic initiatives.

“Our performance reinforces the meaningful runway ahead across our portfolio. We are harnessing our unique blend of magic and logic – distinctive brands amplified by an agile and data-rich platform.

“These differentiators enable us to deliver the continuous innovation necessary to build lasting customer relationships in the context of a rapidly evolving landscape.”

For the full year, Tapestry expects to record revenue of approximately $6.7bn and a year-on-year EPS growth of nearly 20% to $3.45.