Tapestry, a conglomerate of accessories and lifestyle brands, has announced a 7% increase in its operating profit for the second quarter (Q2) of fiscal year 2024 (FY24).
The company’s gross profit reached $1.49bn in Q2 FY24, up from $1.39bn in the same period of FY23.
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Its gross margin for the quarter stood at 71.6%, a significant improvement on the 68.6% reported in the same period of the previous year.
Despite the robust gross profit, Tapestry experienced a slight decrease in net income, which was reported at $322m, down from the previous year’s $330m.
The company, which owns luxury brands such as Coach, Kate Spade and Stuart Weitzman, reported earnings per diluted share (EPS) of $1.39 in Q2 FY24, compared with $1.36 in the same period of the previous fiscal year.
Its net sales totalled $2.08bn, representing growth of 3% on both a reported and constant currency basis against the Q2 2023 figure of $2.03bn.
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By GlobalDataTapestry’s selling, general and administrative expenses for the quarter were $1.05bn, accounting for 50.2% of sales.
Its operating income for the quarter was strong at $448m, representing an operating margin of 21.5%.
Tapestry chief executive officer Joanne Crevoiserat stated: “Our second quarter results exceeded expectations, highlighting the power of brand building and disciplined execution. During the key holiday season, our passionate teams delivered for our customers, fuelling brand magic through innovative product, engaging storytelling and operational excellence.
“Importantly, we drove record revenue and EPS, while advancing our strategic agenda. Based on these results, we are raising our EPS outlook for the fiscal year.”
The company expects EPS for fiscal 2024 to be $4.20 to $4.25, representing 8% to 9% growth against the previous year.
In 2023, Tapestry agreed to acquire global fashion luxury group Capri Holdings in a deal valued at $8.5bn. Capri owns luxury brands Versace, Jimmy Choo and Michael Kors.
