Tapestry Inc (NYSE:TPR) has reported record first-quarter revenue and earnings as it prepares for its $8.5 billion acquisition of Jimmy Choo owner Capri Holdings, which is expected to close in 2024.
However, the parent company of Kate Spade, Coach and Stuart Weitzman has tempered its full-year revenue expectations due to a more moderate outlook for sales in Asia and North America.
Net sales for the three months ended September 30, 2023, came in slightly higher at $1.51 billion but fell shy of the $1.54 expected by Wall Street analysts.
Adjusted earnings per share (EPS) rose 18% to $0.93, above analysts’ consensus of $0.90.
“During the quarter, we drove revenue gains at constant currency, significant gross margin expansion and high-teens adjusted EPS growth,” CEO Joanne Crevoiserat commented in a statement.
“Importantly, we continued to invest in our brands and consumer engagement platform, reinforcing our commitment to driving innovation and cultivating lasting relationships with customers around the world.”
The company expects 2024 revenue of roughly $6.7 billion compared to a prior forecast of close to $6.9 billion.
It still expects EPS to rise by 6% to 7% to between $4.10 and $4.15.
Its outlook doesn’t take the Capri transaction into account.
Tapestry’s shares were up 5.2% at $28.74 in early afternoon trading in New York.
Contact the author at stephen.gunnion@proactiveinvestors.com