The parent company of Coach and Kate Spade, Tapestry, has posted strong results for the first quarter ended on 26 September, with net sales increasing by 11 per cent to $1.89bn.
The company’s gross profit increased to $1.49bn compared to $1.3bn in the same period last year.
Tapestry posted a strong operating income that surged by 24 per cent year-over-year to $439m.
There was a standout performance in Coach, with strong growth in the leathergoods offering driven by handbag revenue gains for the brand.
Tapestry has expanded its customer base globally and has acquired over 2.6m consumers in the quarter, of which 35 per cent were Gen Z.
There was significant growth across all of the business’ regions, with revenue in North America and Europe increasing by 4 per cent and 22 per cent, respectively.
Over the first quarter, Coach delivered a 16 per cent growth, which includes a 7 per cent growth in North America and a 30 per cent surge internationally.
The business ended the quarter with an earnings per diluted share (EPS) of $1.76, marking a 38 per cent rise from $1.28 in the year prior.
Joanne Crevoiserat, CEO of Tapestry said: “Our first quarter marked a powerful start to the year, with revenue, margin, and earnings growth ahead of expectations and strength around the world.
“Our Amplify strategy continues to bring new consumers to our brands through our distinctive combination of creativity, craftsmanship, and value.
“Building on this outperformance, we are raising our full year outlook, reflecting our confidence in the durability of our growth.”
To reflect the strong performance, Tapestry has now raised its financial outlook for the upcoming year.
The business expects full-year revenue to be in the range of $8.5bn and $8.6bn, which is an increase from the prior guidance of $8.4bn and $8.5bn.
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