Outlook positive for Tapestry in full 2023 results
Gross profit for the quarter was US$1.17 billion with a margin of 72.4%, while operating income came in at US$274 million with a margin of 16.9%.
Coach alone had net revenue of US$1.25 billion, up by 5% year-on-year, while gross profit was US$963 million with a margin of 75.1%.
Kate Spade was down by 9% in the fourth quarter to US$309 million in net revenue, with a gross profit of US$199 million and a margin of 64.3%.
Finally, Stuart Weitzman had a net revenue decline of 11% year-on-year to US$63 million, with gross profit of US$37 million and a margin of 59.4%.
As a whole, Tapestry reported net sales of US$6.66 billion for the full financial year (which ended July 1), down by around 0.3%.
Looking forward to the 2024 financial year, the company expects revenue of around US$6.9 billion with growth between 3-4% on both a reported and constant currency basis.
CEO Joanne Crevoiserat said: “Building on our strong foundation, we are focused on the future. We remain steadfast in our commitment to deliver revenue and profit gains across our current portfolio where our runway is significant.”
Earlier this month, Tapestry announced an agreement to acquire rival Capri Holdings, which owns Versace, Michael Kors and Jimmy Choo.