Tapestry’s third quarter results exceed expectations

United States
Published:  12 May, 2022
Credit: Coach

Tapestry has released its third quarter 2022 financial results, achieving 13% growth in net sales year-on-year to US$1.44 billion.

Gross profit was US$1.01 billion for the period on both a reported and non-GAAP basis, and gross margin was 69.9%, impacted by incremental freight expense needed to meet consumer demand.

Tapestry reported US$123 million in net income for the third quarter, while operating income was US$169 million and operating margin was 11.8%, against US$117 million and 9.2% in the same period last year.

Covid-19 restrictions in China have resulted in a modification of the company’s full 2022 outlook. Tapestry now expects revenue of approximately US$6.7 billion, which the company says represents a growth rate in the high teens against 2021.

Joanne Crevoiserat, Chief Executive Officer of Tapestry, said, “Our third quarter results significantly exceeded expectations led by continued strong growth in North America. We drove increased customer demand at Coach, Kate Spade and Stuart Weitzman, reflecting the vibrancy of each of our brands, the power of our platform and our team’s successful execution of our strategic initiatives.”