Coach owner Tapestry reported Thursday quarterly results that topped its own estimates, driven by triple-digit e-commerce growth and a strong rebound in China.
“We are very pleased with our first quarter results, which exceeded expectations,” CEO Joanne Crevoiserat said in a statement. “Our performance underscores the power of our brands.”
While the company, which also owns the Kate Spade, is not offering a full-year outlook at this time due to the uncertainty stemming from the coronavirus pandemic, it said that given the strong start to fiscal 2021, it is now forecasting revenue and profits will grow for the year.
Tapestry shares were up more than 5% in premarket trading.
Here’s how the retailer did during its fiscal first quarter of 2021, compared with what analysts were expecting, using Refinitiv data:
- Earnings per share: 58 cents, adjusted, vs. 23 cents, expected
- Revenue: $1.17 billion vs. $1.07 billion, expected
Sales fell 14% to $1.17 billion from $1.36 billion a year ago. That came in better than expectations for $1.07 billion, buoyed by strength online and double-digit revenue growth in Mainland China.
Tapestry’s net income for the quarter ended Sept. 26 increased to $231.7 million, or 83 cents per share, from $20 million, or 7 cents a share, a year earlier, when Tapestry recorded more than $70 million in impairment charges.
Excluding one-time charges during the latest quarter, Tapestry earned 58 cents per share, better than expectations for 23 cents.
Tapestry said its inventories at the end of the quarter totaled $811 million, compared with $880 million a year earlier.
Earlier this week, the company named Crevoiserat as chief executive officer, effective immediately. She had been serving as interim chief after Jide Zeitlin resigned abruptly in July, amidst an investigation into allegations regarding his personal behavior.
As of Wednesday’s market close, Tapestry shares are down about 21% this year. The company has a market cap of $5.9 billion.
Find the full earnings press release here.
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