The company has enjoyed an increased demand for luxury handbags and apparel in China from pandemic lows.
Net sales fell 13.7 per cent to $1.17bn, but beat analysts’ average estimate of $1.07bn, the company’s net income rose to $231.7M from $20M a year earlier, when Tapestry took on more than $70M in impairment charges.
Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc., said, “We are very pleased with our first quarter results, which exceeded expectations and demonstrated the bold actions we are implementing as part of our Acceleration Program. We delivered strong profit growth across our portfolio of brands in the face of an unprecedented and challenging backdrop. We drove a meaningful sequential improvement in topline trends, supported by strength in Digital and China. At the same time, we expanded gross margin by deliberately reducing promotional activity and raising AUR, while also tightly controlling SG&A expense. Taken together, we achieved a significant increase in EPS and generated positive free cash flow.”
