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Kate Spade acquisition fuels growth for Coach owner

Tapestry, the US owner of Coach, Stuart Weitzman and Kate Spade, has announced a 35% jump in net sales to $1.79bn (£1.28bn) for the second quarter of 2018.

The growth was attributed to rising sales at Coach, which were up 2% to $1.23bn (£880m) for the period, as well as the acquisition of accessories brand Kate Spade, which Tapestry bought for $2.4bn (£1.9bn) in May 2017.

Sales also rose 2% to $121m (£86.5m) at footwear brand Stuart Weitzman.

Kate Spade’s net sales for the quarter were $435m (£311m), but a comparative figure was not provided. Like-for-like store sales at the brand fell 7% during the period.

The group’s gross profit for the period was $1.18bn (£840m), but again, it did not give the figure for the same period the year before.

Victor Luis, chief executive of Tapestry, said: “Our second quarter performance exceeded our expectations, driven by a return to growth for Coach, sales gains at Stuart Weitzman and the contribution of Kate Spade as we continued to make progress on the brand’s integration.

“Coach comparable store sales rose globally, led by outperformance in North America, reflecting our strong holiday offering and improved inventory mix, all supported by festive marketing campaigns. In addition to the top line gains, we drove significant operating income growth on better than expected profitability metrics, notably gross margin, while expenses were well controlled and also benefitted from timing shifts.”

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