Coach-Owner Tapestry Beats Fiscal Q1 Profits Expectations, Ahead of Monumental Capri Holdings Acquisition
The American fashion conglomerate, which also owns Kate Spade and Stuart Weitzman, earned profits of $195 million USD in the three month period.
Tapestry Inc. surpassed analysts expectations for its Q1 2024 financial results, earning profits of $195 million USD. The figure comes ahead of the conglomerate’s acquisition of Capri Holdings, which is expected to complete next year and ultimately place Tapestry at a $12 billion USD valuation.
The deal, which was announced in August, will merge Tapestry’s Coach, Kate Spade and Stuart Weitzman with Capri’s Versace, Jimmy Choo and Michael Kors under one roof, forming the largest American parent company in fashion.
In Q1 2024, Tapestry’s profits were just shy of last year’s figure of $195.3 million USD; however, its earnings per diluted share were up from 79 cents to 84 cents. Sales in the quarter saw a 0.4% increase to $1.513 billion USD, though analysts expected sales to reach a top line of $1.535 billion USD.
While North American sales remained approximately the same to last year, Tapestry’s international revenue increased by 7% overall. Notably, the company reported a 12% increase in Japan and a 9% jump in Greater China.
Joanne Crevoiserat, chief executive officer of Tapestry, said, “We achieved record first quarter revenue and EPS as we continued to successfully advance our strategic growth agenda against a dynamic external backdrop. Our strong and consistent results demonstrate the power of brand building and customer centricity, underpinned by the creativity of our talented global teams and disciplined execution.”
Crevoiserat added, “During the quarter, we drove revenue gains at constant currency, significant gross margin expansion and high-teens adjusted EPS growth. Importantly, we continued to invest in our brands and consumer engagement platform, reinforcing our commitment to driving innovation and cultivating lasting relationships with customers around the world.”
See Tapestry’s full Q1 2024 financial report here.
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