Tapestry Inc. sales rise thanks to "record year" at Coach
Tapestry Inc. has reported a 1% increase in revenue for the full year ending 29 June 2024, helped by a "record" year at Coach, which surpassed £3.7 billion ($5 billion) in sales.
The company, which also owns Kate Spade and Stuart Weitzman, saw sales decline 1% in North America, while international sales grew 6%, representing growth of 14% in Europe.
By channel, direct-to-consumer sales were in-line with the previous year on a constant currency basis. Wholesale revenue increased, led by the international markets, including growth on digital platforms.
Brick-and-mortar sales also achieved growth, driven by the launch of new retail experiences and concepts globally, which helped to drive awareness and engagement among younger customer cohorts.
For the fourth quarter, Tapestry shared the following results:
- Net sales down 2% to £1.23 billion ($1.59 billion), compared to £1.25 billion ($1.62 billion) in the prior year period.
- Gross profit of £992 million ($1.19 billion) and gross margin of 74.9%, reflecting operational improvements and a benefit of approximately 90 basis points from lower freight expense.
- Net income of £123 million ($159 million).
For the full year, Tapestry shared the following results:
- Net sales up 1% to £5.17 billion ($6.67 billion), compared to £5.16 billion ($6.66 billion) in the prior year period.
- Gross profit of £3.7 billion ($4.89 billion) and gross margin of 73.3%, reflecting a benefit of 130 basis points from lower freight expense, as well as operational improvements.
- Net income of £632 million ($816 million).
Looking ahead, the US-based company expects revenue growth in the area of £5.1 billion ($6.7 billion) for fiscal year 2025.
Joanne Crevoiserat, CEO of Tapestry Inc., said: "Our fourth quarter results exceeded expectations, capping a successful year. This is a testament to our passionate global teams whose creativity and exceptional execution continue to fuel our brands and business.
"Importantly, through an unwavering focus on powering innovation and consumer connections, we meaningfully advanced our strategic agenda in fiscal year 2024, delivering strong financial results against a dynamic backdrop. From this position of strength, we have a bold vision for the future and a steadfast commitment to drive growth."