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Coach sales boost Tapestry first-quarter results

Luxury lifestyle and accessories brand owner Tapestry has reported net sales of $1.38bn (£1.08bn) for the three months to 29 September, boosted by sales from Coach.

Net sales increased by 7% on a reported basis for the group’s first quarter, compared with the same period last year.

Tapestry owns luxury label Coach, shoe brand Stuart Weitzman and accessories brand Kate Spade New York. It reported continued growth at Coach, where global comparable-store sales rose by 4%. The brand’s net sales totalled $961m (£751m) for the first quarter, up from $924m (£722m) in the previous year.

At Kate Spade, net sales increased by 21% to $325m (£254m) on a reported basis for the first quarter. Tapestry bought Kate Spade in July last year, and the prior year’s first-quarter results cover the period after the closing of the acquisition. Global comparable store sales for the brand declined by 5%.

Stuart Weitzman sales and margins have been negatively affected by development and delivery delays, which have since been stabilised. Net sales fell by 1% year on year to $95m (£74m) for the first quarter, but Tapestry indicated it is on track to deliver profitable sales growth next year.

Tapestry CEO Victor Luis said Kate Spade contributed to the company’s overall performance, and highlighted the positive editorial and trade reception of creative director Nicola Glass’s inaugural collection seen at the spring 19 edition of New York Fashion Week.

Glass joined the brand in January this year. Tapestry named Anna Bakst as the new brand president and CEO for Kate Spade in April, and appointed Eraldo Poletto to lead Stuart Weitzman.

Luis said: “Our first-quarter performance and progress on our strategic priorities to date give us confidence in our ability to achieve the goals we’ve set out for fiscal 2019. We continue to expect to deliver strong revenue and operating income growth, while making investments to support our long-term vision and drive a return to both double-digit operating income and earnings per share growth in fiscal 2020.

“We will continue to harness the power of our multi-branded model, fuel innovation across brands, drive global growth and advance our digital and data analytics capabilities.”

 

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