Tapestry’s first-quarter sales rose 26% to $1.48 billion.
Tapestry maintained momentum in its first quarter amid strength in North America and China, and online. The upscale retailer raised its full-year outlook, citing “strong underlying business trends.”
The parent company of Coach, Kate Spade and Stuart Weitzman reassured investors on its earnings call that it felt confident it had enough inventory to meet holiday demand. On the call, CFO Scott Roe said the company would spend approximately $70 million on air freight during its second quarter to speed up the delivery of merchandise in time for holiday shoppers.
“While supply chain challenges persist due to the global pandemic, we’re remaining agile and taking deliberate actions to meet growing consumer demand,” Tapestry CEO Joanne Crevoiserat said in a statement. Crevoiserat took the reins of the company in October 2020.
Tapestry reported that its net income fell to $226.9 million, or $0.80 a share, in the quarter ended Oct. 3, from $231.7 million, or 83 cents a share, in the year-ago period. Adjusted earnings came to $0.82, beating analysts estimates of $0.70.
Total revenues rose 26% to $1.48 billion, above estimates of $1.44 billion. Coach sales rose 27% to $1.1 billion from $875 million a year earlier, and Kate Spade revenues increased 25% to $299 million from $240 million. Sales at Stuart Weitzman grew 18% to $66.5 million from $56.4 million. Online sales rose nearly 50% compared to the year-ago period, and increased 275% compared with 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,” stated Crevoiserat. “Overall, this performance reaffirms our conviction in our ability to fuel continued revenue and profit gains.”
Tapestry, which has more than 1,4000 stores globally, raised its fiscal 2022 sales outlook to $6.6 billion from a previous estimate of $6.4 billion. It upped its adjusted earnings per share range to $3.45 to $3.50, from $3.30 to $3.35.
The company’s board also approved a $1 billion stock buyback program.