Tapestry’s net sales totaled US$1.17 billion for its fiscal first quarter, down from US$1.36 billion in the prior year (-14%). Gross profit totalled US$830 million, while gross margin was 70.8%, on a reported and non-GAAP basis, compared with a reported gross profit of approximately US$914 million and gross margin of 67.3% in the same quarter of the previous fiscal year. Operating income was US$202 million on a reported basis, while operating margin was 17.3% versus operating income of US$52 million and an operating margin of 3.8% in the prior year. Net income for the quarter came in at US$232 million (Q1 FY2019: US$20 million) with earnings per diluted share of US$0.83 (Q1 FY2019: US$0.07).

Net sales for Coach totaled US$875 million for the fiscal first quarter, compared with US$966 million in the prior year (-9%). Kate Spade net sales totalled US$240 million, down from US$306 million (-21%), and net sales for the Stuart Weitzman brand amounted to US$56 million; a sharp decline from the US$87 million recorded in the same period of the prior year, down 35%.

Tapestry said it “drove significant growth in China through compelling product assortments, enhanced marketing and expanded reach across direct channels and third-party online distribution.” It streamlined its organisational structure and optimised its global fleet with 15 net store closures in the first fiscal quarter, representing a net decrease of 50 stores from the prior year. The Group said it remains on track to achieve gross run-rate savings of US$300 million, including gross savings of US$200 million in fiscal 2021.