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2mo ago

Tapestry Raises Annual Forecasts Following Strong Q2 Earnings

The company exceeded revenue and profit expectations, driven by growth in its Coach brand and steady demand in North America and China.

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Items are seen in a Kate Spade store, owned by Tapestry, Inc., in Manhattan, New York, U.S., November 19, 2021. REUTERS/Andrew Kelly/File Photo
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Overview

  • Tapestry reported Q2 revenue of $2.2 billion, surpassing analyst expectations of $2.11 billion, with adjusted earnings per share of $2 beating forecasts by $0.25.
  • Coach sales increased by 11%, offsetting declines of 10% and 15% in Kate Spade and Stuart Weitzman sales, respectively.
  • Gross profit rose to $1.63 billion, reflecting improved pricing strategies, while operating income grew to $492.8 million with a higher operating margin of 22.4%.
  • The company raised its full-year earnings per share forecast to $4.85-$4.90, up from the previous $4.50-$4.55 range, citing business outperformance, share repurchases, and a tax benefit.
  • Tapestry emphasized continued investments in product innovation and global growth, particularly in China, while pausing acquisitions to focus on turning around Kate Spade.