Tapestry beats estimates as Coach handbags lure in sales
Luxury US fashion giant Tapestry beat Wall Street predictions in its first-quarter sales report this afternoon, amid rising demand for its flagship Coach handbag brand.
Quarterly net income hit $122.3m (£95m), rising from a loss of $17.7m a year earlier, while first-quarter net sales jumped seven per cent to $1.38bn.
Meanwhile, profits were slightly higher than expectations, with adjusted earnings per share of 48 cents beating estimates of 45 cents.
The fashion house was bolstered by a four per cent rise in sales at Coach, the women’s handbag retailer which makes up over 70 per cent of Tapestry’s overall sales.
According to the firm, expansion of its Kate Spade label has also helped bump up sales, which rose by 21 per cent overall in the last quarter.
However, Tapestry’s Stuart Weitzman footwear brand suffered a one per cent year-on-year dip in sales following delays in development and deliveries.
Chief executive Victor Luis said: “We remain well positioned to drive positive comparable store sales for Coach driven by a broad and compelling product assortment across price points, categories, usage occasions, channels and geographies augmented by an enhanced shopping experience, whether in stores or online.”