Finance

Coach owner Tapestry sales in North America return to pre-pandemic levels, retailer swings to profit

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Customers walk past a Coach store at Shanghai New World Daimaru department store on August 12, 2019 in Shanghai, China.
VCG | Visual China Group | Getty Images

Coach owner Tapestry said Thursday that its fiscal third-quarter sales in North America returned to pre-pandemic levels, as demand for luxury goods rebounds from 2020 lows.

Chief Executive Joanne Crevoiserat said the latest results “significantly outpaced expectations,” boosted by Tapestry’s online business and heightened demand for its purses, shoes and other accessories in Asia.

Its stock was unchanged in premarket trading on the news.

Here’s how the company did for the quarter ended March 27, compared with what analysts were anticipating, based on a polling by Refinitiv:

  • Earnings per share: 51 cents adjusted vs. 31 cents expected
  • Revenue: $1.27 billion vs. $1.22 billion expected

Tapestry’s net income for the fiscal third quarter climbed to $91.7 million, or 32 cents per share, compared with a net loss of $677.1 million, or $2.45 per share, a year earlier. Excluding one-time charges, Tapestry earned 51 cents per share, better than the 31 cents that analysts had forecast, using Refinitiv.

Net sales rose 19% to $1.27 billion from $1.07 billion a year earlier, beating analysts’ estimates of $1.22 billion.

The high-end handbag maker reported a triple-digit revenue increase in Mainland China compared with 2020 levels, and 40% growth compared with 2019.

The company said it is not providing detailed guidance for fiscal 2021. But assuming a continued recovery in its business coming out of the pandemic, it said it now expects revenue for the fiscal year to increase at a mid-teens rate.

Find the full press release from Tapestry here.

This story is developing. Please check back for updates.

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