Premium fashion group Tapestry revealed net sales grew 33% to $1.32bn (£970m) on a reported basis for its third quarter to 31 March, buoyed by a strong performance at Coach and the acquisition of Kate Spade last year.
Reported gross profit was $909m (£660m), whilst gross margin declined to 68.7%, compared to 70.9% the previous year. Operating income for the quarter was $159m (£116m) on a reported basis.
Tapestry CEO Victor Luis said: “Our solid third quarter performance was consistent with our expectations, as we achieved double-digit increases in sales and earnings per share.”
Coach posted net sales of $969m (£710m) for the third quarter, up 6% on the previous year, with gross profit for Coach totalling $691m (£506m) on a reported basis. Operating income for Coach was $241m (£177m) on a reported basis.
Luis said: “Results were driven by continued growth at Coach, where comparable store sales rose, led by outperformance in North America, and reflected our strong offering, including the successful global relaunch of Signature in retail.”
At Kate Spade, global comparable store sales declined 9%, which net sales totalling $269m (£197m) for the third quarter. The group said this reflected, in part, the strategic pullback in wholesale disposition and online flash sales, partially offset by the consolidation of the joint ventures for Mainland China, Hong Kong, Macau and Taiwan.
Stuart Weitzman net sales grew 5% to $84m (£62m) for the third quarter, compared to $80m (£58m) reported the previous year.
Last month, Tapestry announced the appointments of Anna Bakst as the new CEO and brand president for Kate Spade, alongside Eraldo Poletto, who is to head up Stuart Weitzman.
Luis added, “As we look forward to the balance of our fiscal year and into 2019, we are excited about the growth opportunities for Tapestry and reaping the continued benefits of a diversified, multi-brand model.”