Coach Parent Tapestry Reports Strong Q4 Profit Growth Despite Flat Sales — Retail Bum

Tapestry, the parent company of Coach, saw its profits rise during the fourth quarter even though its sales figures remained unchanged.

The company, which recently revealed its intention to acquire its rival Capri Holdings, achieved a net profit of $224 million in the quarter ending on July 1, 2023. This represents an improvement from the $189 million recorded during the corresponding period of the previous year.

Revenue for the fourth quarter remained stable at $1.62 billion. The company’s flagship brand, Coach, saw a 3% increase in sales, amounting to $1.25 billion. However, these gains were offset by a 10% decline at Kate Spade, totaling $309.5 million, and a 13% reduction at Stuart Weitzman, which amounted to $62.6 million.

Over the entire year, Tapestry encountered a slight decrease in sales, totaling $6.66 billion, in contrast to the previous year’s figure of $6.68 billion. The company had initially predicted sales to reach $6.7 billion.

The company’s annual net profit grew to $936 million, up from $856 million, while its earnings per diluted share (EPS) rose to $3.88 from $3.17 in the prior year. The company’s initial EPS projection ranged from $3.85 to $3.90.