Sector: Consumer Discretionary|Industry: Luxury Goods|Market Cap: $15.56B|Employees: 18.6K
Tapestry, Inc. is a global house of iconic accessories and lifestyle brands, including Coach, Kate Spade, and Stuart Weitzman. The company operates through DTC, wholesale, and licensing businesses, focusing on distinctive products and customer experiences. Tapestry prioritizes balanced growth across regions, particularly in North America and China, while capitalizing on opportunities in under-penetrated markets.
Tapestry reported net sales of $2.08 billion for the quarter ended December 30, 2023, a 2.9% increase compared to $2.02 billion in the prior year. The Coach brand saw a 6.4% increase in net sales, offsetting declines in Kate Spade and Stuart Weitzman.
Gross margin increased to 71.6% compared to 68.6% in the prior year, driven by lower freight costs, favorable geography mix, and net pricing improvements. Lower freight expense positively impacted gross margin by approximately 170 basis points.
Operating income increased to $447.6 million, a 7.0% increase compared to $418.2 million in the prior year. The operating margin was 21.5% compared to 20.6% in the prior year, reflecting improved profitability.