Tapestry’s gross profit amounted to US$935 million on a reported basis, and gross margin for the quarter was 67.7% against US$763 million and 59.2%, respectively, in the prior year. Operating income totalled US$158 million on a reported basis, while operating margin was 11.4% versus a loss of US$22 million and an operating margin of 1.7% in the prior year. Net income for the quarter was US$122 million on a reported basis, with earnings per diluted share of US$0.42. This compared with a reported net loss of US$18 million with earnings per diluted share of (US$0.06) in the prior year period.

Net sales for the Coach brand totalled US$961 million for the first fiscal quarter, up from US$924 million in the prior year (+4%). Global comparable store sales increased +4%, including a benefit of approximately 50 basis points driven by an increase in global e-commerce. The Kate Spade brand reported net sales of US$325 million for the first fiscal quarter (Q1 2018: US$269 million), representing a +21% increase on a reported and constant currency basis, while net sales for Stuart Weitzman totalled US$95 million for the first fiscal quarter, down from US$96 million in the same period of the prior year (-1%).

“At the one-year anniversary of establishing Tapestry as our new corporate identity, our results continue to reflect the benefits of our diversified multi-brand model. First quarter performance was consistent with our expectations as we achieved strong increases in sales and operating income, while earnings per share gains were further enhanced by a favourable tax rate,” said Victor Luis, CEO, Tapestry.

Tapestry says it continues to expect revenues for fiscal 2019 to increase at a mid-single-digit rate from fiscal 2018 to US$6.1-US$6.2 billion, and it also maintains its guidance for the operating income growth rate to exceed the revenue growth rate, “reflecting the organic growth of the business, the realisation of incremental synergies from the Kate Spade acquisition as well as the impact of distributor consolidations and buybacks and systems investments.”