Tapestry’s gross profit amounted to US$916 million on a reported basis in the Group’s third fiscal quarter 2019, while gross margin for the quarter was 68.8% against US$908 million and 68.6%, respectively, in the prior year. Operating income totalled US$106 million on a reported basis and operating margin was 7.9%, down from US$159 million and 12% in the prior year. Net income for the quarter was US$117 million on a reported basis, with earnings per diluted share of US$0.40, compared with US$140 million and US$0.48 in the prior year period.
Net sales for the Coach brand totalled US$965 million for the third fiscal quarter, slightly up from US$969 million in the prior year on a reported basis; +1% on a constant currency basis. Net sales for Stuart Weitzman amounted to US$85 million compared with US$84; up +2% on a reported basis and +4% in constant currency, while net sales for Kate Spade totalled US$281 million, up from US$269 million in the prior year, representing an increase of 4% on a reported basis and 5% in constant currency.
After a sustained fall in the Group’s value since the beginning of 2019 (-11%), Tapestry announced its Board of Directors has authorised the repurchase of up to US$1 billion of its outstanding common stock, with shares rising +8% shortly after the announcement.
