Coach continues to push the company, and its outlook for this fiscal year, higher.
Coach continued to chug along in the first quarter, pushing Tapestry Inc. to a strong start for its fiscal year — which is building off big growth last year.
Net income for the quarter ended Sept. 26 increased 30.9 percent to $360 million, or $1.76 a diluted share. Adjusted earnings tallied $1.82 per share — easily beating the $1.56 analysts forecast.
Sales rose 12 percent to $1.9 billion, excluding the impact of Stuart Weitzman, which was spun off to Caleres last year. That topped the $1.85 billion analysts forecast.
Coach sales continued to leap, increasing 16 percent to $1.7 billion. Kate Spade, which is retrenching in order to grow back from a stronger base, was down 10 percent to $233 million for the quarter.
“We’re bringing new customers into our brand and into the category,” crowed Joanne Crevoiserat, chief executive officer, in an interview with WWD. “We delivered revenue margin growth ahead of expectations and we saw strength of the world, including a beat in North America.
“We’re growing the market and we’re growing,” Crevoiserat said. “And what’s really notable is not just what we delivered, but it’s really how we’re delivering it. The capabilities and culture that we’re building are durable competitive advantages and those are on display.”
Tapestry has been building around what it’s dubbed the “Amplify growth strategy” — a three-year plan that was laid out last year, although its revenue targets were hit in Year One.
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