First quarter net sales at Tapestry totalled 1.51 billion dollars, slightly above the prior year. Excluding a 130 basis point headwind from currency due to the appreciation of the U.S. dollar revenue increased approximately 2 percent versus last year.
Gross profit for the quarter was 1.10 billion dollars, while gross margin was 72.5 percent, which reflected a benefit of 150 basis points.
Commenting on the trading update, Joanne Crevoiserat, chief executive officer of Tapestry said: “We achieved record first quarter revenue and EPS as we continued to successfully advance our strategic growth agenda against a dynamic external backdrop. During the quarter, we drove revenue gains at constant currency, significant gross margin expansion, and high-teens adjusted EPS growth.”
Highlights of Tapestry’s Q1 performance
Operating income for the quarter was 253 million dollars on a reported basis, while operating margin was 16.7 percent. On a non-GAAP basis, operating income was 273 million dollars, while operating margin was 18 percent.
Net income was 195 million dollars, with earnings per diluted share of 84 cents. On a non-GAAP basis, net income was 216 million dollars, with earnings per diluted share of 93 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 through dividend payments for an anticipated annual dividend of 1.40 dollars per share, an increase of 17 percent versus prior year.
On August 10, 2023, Tapestry, Inc. acquired Capri Holdings Limited, establishing a powerful global house of iconic luxury and fashion brands.
Tapestry forecasts slight revenue increase for FY24
For fiscal 2024, Tapestry expects revenue of approximately 6.7 billion dollars, representing a slight increase to prior year on a reported basis.
Excluding an FX headwind of approximately 150 basis points, the company expects constant currency revenue growth of 2 percent to 3 percent compared to the prior year.
The company anticipates earnings per diluted share of 4.10 dollars to 4.15 dollars, representing approximately 6 percent to 7 percent growth compared to the prior year.