Net sales

Tapestry reports net revenue of $2.14 billion for the second quarter of FY22

Tapestry, a US-based luxury fashion holding company, has reported that its net sales increased 27% to $2.14 billion in the second quarter (Q2) of fiscal 2022 (FY22), compared to $1.69 billion in the same period last year.

For the three months to Jan. 1, the company’s net sales were up 18% from their pre-pandemic levels.

Tapestry’s operating profit increased to $463 million on a reported basis from $389 million last year, while its operating margin fell to 21.6% from 23.1% year-on-year annual.

The company reported net income of $318 million on a reported basis and its earnings per share (EPS) was $1.15, compared to $1.11 in the prior year period.

Tapestry reported gross profit of $1.46 billion based on stated and not generally accepted accounting principles (GAAP).

Based on its second-quarter performance, Tapestry raised its FY22 revenue forecast to approximately $6.75 billion, up from the company’s previous forecast of revenue of $6.6 billion.

The company expects EPS to be between $3.60 and $3.65, up from its previous guidance of $3.45 to $3.50.

Tapestry CEO Joanne Crevoiserat said: “We delivered record sales this holiday quarter, highlighted by an inflection at Kate Spade, continued momentum at Coach and a return to pre-pandemic revenue levels at Stuart. Weitzman.

“The combination of bold initiatives, compelling products and effective execution has won us over with consumers across all of our brands.

“Based on these results, we are increasing our revenue, operating profit and EPS guidance for the year.

“Our performance over the past 18 months has demonstrated the benefits of our globally diverse, consumer-centric and data-driven platform.

“Through the Acceleration Program, we made fundamental changes that successfully accelerated our growth with stronger margins, while making strategic investments to drive customer engagement and lifetime value.”

Based in New York, Tapestry owns several luxury fashion brands, including Coach, Kate Spade and Stuart Weitzman.

Last May, the company announced net sales of $1.27 billion for the third quarter (Q3) of fiscal year 21, compared to $1.07 billion a year earlier.