Coach owner Tapestry (NYSE:TPR) on Thursday said its sales fell 7% during the holiday quarter, as the retailer continues to work to claw its way back from the losses it’s seen during the pandemic and the falloff in foot traffic it still faces in stores.
The retailer appeared more optimistic, however, about shopper demand returning stronger later this year. But it declined to give a specific earnings forecast.
Chief Executive Joanne Crevoiserat said the company managed to sell more of its bags, including those under the Kate Spade brand, at full price during the holiday season, as it increasingly distances itself from relying on promotions to lure shoppers in.
For the three-month period ended Dec. 26, Tapestry said net income rose to $311 million, or $1.11 per share, from $298.8 million, or $1.08 per share, a year earlier. Excluding one-time charges, Tapestry earned $1.15 per share, better than the $1.01 that analysts were expecting.
Net sales declined 7% to $1.69 billion from $1.82 billion a year earlier. That came in ahead of estimates for $1.63 billion.
Tapestry said its online business grew triple digits compared with the prior year, with digital sales representing about one-third of global sales, and nearly half of revenue in North America.
In Mainland China, Tapestry reported year-over-year growth of more than 30%, and the company said it achieved record sales during Alibaba’s annual 11.11 shopping event.
Within each of its brands, Coach sales fell 4% during the quarter, while Kate Spade sales tumbled 13%, and Stuart Weitzman sales dropped 27%.
Tapestry said it expects full-year revenue to climb at a high-single digit rate on a 52-week basis, and around 10% on 53-week basis.
TPR shares sprang up 74 cents, or 2.1%, to $35.34.
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