Customers walk past a bus shop in Shanghai New World Daimaru department store in Shanghai, China on August 12, 2019.
VCG | Visual China Group | Getty Images
Bus owner Tapestry said Thursday that North American sales had returned to pre-pandemic levels in the third quarter of the fiscal year as demand for luxury goods fell from 2020 lows.
Managing Director Joanne Crevoiserat said the latest results “exceeded expectations significantly”, fueled by Tapestry’s online business and increased demand for wallets, shoes and other accessories in Asia.
The stock remained unchanged in the news in premarket trading.
Here’s how the company performed for the quarter ended March 27, compared to analyst expectations based on a survey by Refinitiv:
- Earnings per share: 51 cents adjusted compared to 31 cents expected
- Revenue: $ 1.27 billion versus $ 1.22 billion expected
Tapestry net income rose to $ 91.7 million, or 32 cents per share, for the third quarter of fiscal year, compared to a net loss of $ 677.1 million, or $ 2.45 per share, a year earlier. With no one-off costs, Tapestry earned 51 cents per share, better than the 31 cents that analysts had forecast with Refinitiv.
Net sales rose 19% from $ 1.07 billion a year ago to $ 1.27 billion, beating analysts’ estimates of $ 1.22 billion.
The high-end handbag maker, which also owns Kate Spade, posted a triple-digit increase in sales in mainland China from 2020 and growth of 40% from 2019.
Sales with the Coach banner increased by 25% compared to 2020 and unchanged compared to the same period of the previous year. Kate Spade grew 1% from 2020 and 10% from 2019. Stuart Weitzman’s sales were up 13% a year earlier, but were down 33% on a two-year basis.
The company announced that it would not provide detailed guidance for fiscal year 2021. Assuming its business continues to rebound from the pandemic, it now expects revenue to spike for the fiscal year in mid-teens. According to Refinitiv, analysts had targeted sales growth of 10% compared to the previous year.
“While the environment continues to be volatile, we see encouraging signs of recovery as vaccination efforts advance, resulting in increased consumer confidence, strong demand for our categories and improvement in in-store traffic trends,” said Crevoiserat.
Tapestry stocks are up about 55% since the start of the year. The company has a market capitalization of $ 13.5 billion.
The full press release on Tapestry’s earnings can be found here.