American fashion firm Tapestry enters FY22 with strong sales

16 Nov '21

2 min read

Pic: Tapestry/ Kate Spade

Coach owner Tapestry has reported a 26 per cent revenue jump to $1.48 billion in the first quarter of FY22 ended on October 2, 2021, compared to the corresponding period of prior year, and 9 per cent compared to pre-pandemic levels. However, net income for the three-month period remained sluggish at $226.9 million (Q1 FY21: $231.7 million).

Gross profit for the quarter accelerated to $1.0 billion ($830.2 million), while operating income expanded to $295.0 million ($202.2 million). The company’s digital revenue nearly surged 50 per cent over Q1 FY21 and over 275 per cent compared to pre-pandemic levels.

“We delivered another quarter of solid performance, reflecting strong customer engagement and increased demand for our brands. Importantly, revenue trends accelerated compared to pre-pandemic levels driven by North America, as well as continued growth in digital and China - two key drivers of long-term opportunity,” Joanne Crevoiserat, chief executive officer of Tapestry, said in a press release.

By brand, sales from Coach advanced 27 per cent to $1.11 billion ($875.4 million), while Kate Spade recorded a 25 per cent increase to $299.5 million ($240.4 million). Furthermore, Stuart Weitzman’s sales went up 18 per cent to $66.5 million ($56.4 million).

“Overall, this performance reaffirms our conviction in our ability to fuel continued revenue and profit gains. While supply chain challenges persist due to the global pandemic, we’re remaining agile and taking deliberate actions to meet growing consumer demand,” Crevoiserat added.

Based on current trends, Tapestry has increased its outlook and now expects FY22 sales to reach $6.6 billion (prior outlook: $6.4 billion), representing mid-teens growth against last fiscal.

Fibre2Fashion News Desk (JL)

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