Kate Spade owner Tapestry sees full year revenues rise

Tapestry, owner of Coach and Kate Spade, has released its financial results for the fourth quarter and full year ending 2 July 2022, revealing a 15% increase in revenue to £5.6 billion ($6.7 billion). 

The group generated £1.6 billion ($2 billion) in digital revenue, accounting for 30% of its total full year revenue. This 25% increase was driven by advanced digital capabilities through investments in the channel to improve customer experience and drive conversion.

Gross profit totalled £3.9 billion ($4.65 billion) and gross margin was 69.6% of its total full year revenue, partially impacted by an incremental freight expense of £149 million ($178 million). Net income increased to £720 million ($856 million), compared to £701 million ($834 million) in the prior year.

Tapestry Inc highlighted its success in maintaining a "consumer-centric lens and fostering emotional connections with its customers", resulting in higher average spend per customer and increased retention rates.

For the fourth quarter, Tapestry shared the following results:

• Revenue of £1.3 billion ($1.6 billion), up 7% against FY19 pre-pandemic levels.
• Gross profit totalled £942 million ($1.12 billion), with a gross margin of 68.9%.
• Net income of £159 million ($189 million), compared to £168 million ($200 million) in the prior year period.

Looking ahead to FY23, the group expects revenue of around £5.8 billion ($6.9 billion), representing an increase of 3% to 4%.

Joanne Crevoiserat, CEO of Tapestry, said: “We drove standout results this fiscal year and delivered accelerated revenue and profit growth across our portfolio – a direct reflection of the vibrancy of our brands and our team’s successful execution of the Acceleration Program.

“Looking forward, we see significant runway for long-term growth as we harness our powerful combination of iconic brands amplified by a data-rich platform that enhances our ability to build lasting customer relationships. Although the external environment is challenging, we are well-positioned given the durability of our category, the strength of our brands and the proven ability of our teams to respond effectively to change. These competitive advantages and established capabilities will enable us to fuel sustained top and bottom-line gains and drive meaningful shareholder value.”