Tapestry’s third quarter net sales declined 2 percent to 1.48 billion dollars. Gross profit totaled 1.11 billion dollars, while gross margin was 74.7 percent.
For fiscal 2024, the company forecasts revenue of over 6.6 billion dollars, approximately in-line with prior year on a reported basis and representing growth of approximately 1 percent on a constant currency basis and earnings per diluted share of 4.20 dollars to 4.25 dollars, up 8 percent to 9 percent compared to the prior year.
Commenting on the third quarter performance, Joanne Crevoiserat, chief executive officer of Tapestry, Inc., said in a statement: “Our third quarter earnings results outperformed expectations, reflecting our unwavering commitment to disciplined brand building and operational excellence.”
Operating income for the quarter was 204 million dollars, while operating margin was 13.8 percent. On a non-GAAP basis, operating income was 239 million dollars, while operating margin was 16.1 percent.
Net income was 139 million dollars, with earnings per diluted share of 60 cents. On a non-GAAP basis, net income was 190 million dollars, with earnings per diluted share of 81 cents.
The company’s board of directors declared a quarterly cash dividend of 35 cents per common share. In the fiscal year, Tapestry continues to expect to return approximately 325 million dollars to shareholders through dividend payments for an anticipated annual dividend rate of 1.40 dollars per share, an increase of 17 percent from prior year.
On August 10, 2023, Tapestry announced an agreement to acquire Capri Holdings Limited, establishing a powerful global house of iconic luxury and fashion brands.
