Tapestry’s net sales totalled US$1.69 billion for the second quarter of its fiscal year 2021, down from US$1.82 billion in the same quarter of the prior year, representing a 7% decline. Gross profit was US$1.17 billion, while gross margin was 69.6% on both a reported and non-GAAP basis, compared with prior year gross profit of approximately US$1.21 billion on a reported and non-GAAP basis and gross margin of 66.6% and 66.7% on a reported and non-GAAP basis, respectively. Operating income was US$389 million on a reported basis and operating margin 23.1%, compared with US$363 million and 20% in the prior year. Net income for the quarter was US$311 million on a reported basis, with earnings per diluted share of US$1.11, compared with a net income of US$299 million with earnings per diluted share of US$1.08 in the prior year period.
Net sales for Coach totalled US$1.23 billion for the fiscal second quarter, down 4% year-on-year, with gross profit at US$888 million and a gross margin of 72.5% on a reported and non-GAAP basis. Net sales for Kate Spade totalled US$376 million (-13%), down from US$430 million in the prior year, with gross profit totalling US$233 million and gross margin at 62.1% on a reported and non-GAAP basis. Net sales for Stuart Weitzman amounted to US$85 million (-27%), down from US$116 million, while gross profit totalled US$53 million on both a reported and non-GAAP basis, and gross margin for the quarter was 62.2%.
Tapestry now expects revenue for the fiscal year to increase at a high-single digit rate on a 52-week basis and in the area of 10% on a 53-week basis. This outlook continues to include the expectation for a topline inflection and strong bottom-line growth during the second half of the fiscal year.
