Luxury fashion group Tapestry has upped its full-year guidance after outperforming its own expectations in the third quarter of the year.
The New York-based group, which owns brands Coach, Kate Spade, and Stuart Weitzman, reported a 5 percent increase in net sales to 1.51 billion dollars in the three months to April 1.
The company saw strong international revenue growth of nearly 20 percent at constant currency as it benefited from a “greater-than-expected” recovery in Greater China, which was up by approximately 20 percent.
Meanwhile, revenue was up 20 percent in Japan and ‘Other Asia’, while revenue in Europe rose 4 percent.
Revenue in the group’s home market of North America grew in the low-single-digits, which was ahead of expectation.
Q3 ‘significantly ahead of expectations’
Group CEO Joanne Crevoiserat told investors: “Our strong third quarter results were significantly ahead of expectations, demonstrating the power of brand building, customer centricity, and our agile operating model.
“We delivered solid revenue gains, expanded both gross and operating margin, and drove robust earnings growth.
“Importantly, we continued to advance our strategic agenda, creating lasting customer relationships around the world through product innovation and compelling omni-channel experiences - a testament to the ingenuity of our talented teams.”
Tapestry’s net profit widened to 187 million dollars in the third quarter, up from 123 million dollars in the same period a year earlier.
Looking ahead, Crevoiserat said the group is “well-positioned to deliver sustainable, profitable growth against a volatile backdrop”.
Based on its Q3 performance, Tapestry upped its full-year revenue and earnings guidance.
The company now expects FY23 revenue to approach 6.7 billion dollars, above its previous estimate of approximately 6.6 billion dollars.
Meanwhile, it forecasts earnings per diluted share of between 3.85 dollars and 3.90 dollars, up from its previous outlook of between 3.70 dollars and 3.75 dollars.