Tapestry reports a moderate increase in revenue amid mixed brand performance.
- The company’s revenue rises by 1% to $6.67 billion due to strong Coach sales.
- Coach sees a 3% sales increase, offsetting declines in other brands.
- Gross profit reaches $4.89 billion, marking a 3.8% year-on-year rise.
- International sales grow, with Europe and Asia showing robust gains.
Tapestry, the parent company of renowned brands such as Coach, Kate Spade, and Stuart Weitzman, experienced a modest revenue increase of 1% for the fiscal year ending 29 June 2024. The company’s total revenue reached $6.67 billion (£5.17 billion), largely driven by record sales of the Coach brand.
The performance of Coach was notable, with sales rising by 3%. This upswing effectively compensated for a 6% decline in revenue from Kate Spade and a 14% decrease from Stuart Weitzman. This overall brand performance underscores the varying market reception and challenges faced by luxury brands under the Tapestry umbrella.
In terms of profitability, Tapestry’s gross profit stood at $4.89 billion (£3.79 billion), reflecting an increase of 3.8% compared to the previous year. The company achieved a gross margin of 73.3%, benefitting from reduced freight expenses, operational improvements, and favourable foreign exchange conditions.
International markets played a significant role in Tapestry’s financial year. The company reported a 6% growth in international sales at constant currency, with Europe leading the growth at +14%, followed by Other Asia at +9%, Japan at +5%, and Greater China at +3%. These figures highlight Tapestry’s expanding global footprint and its strategic market diversifications.
Looking forward, Tapestry anticipates a continued positive trajectory with expected revenue around $6.7 billion (£5.19 billion) for the next fiscal year, representing a 1% year-on-year increase on a constant currency basis. This confidence in future growth was echoed by CEO Joanne Crevoiserat, who stated, ‘Our fourth quarter results exceeded expectations, capping a successful year. From this position of strength, we have a bold vision for the future and a steadfast commitment to drive growth and shareholder value for years to come.’
Tapestry’s diverse brand portfolio and strategic market approaches have positioned it well for continued growth amid industry challenges.
