Coach owner Tapestry (NYSE:TPR) said Thursday that its fiscal third-quarter sales in North America returned to pre-pandemic levels, as demand for luxury goods rebounds from 2020 lows.
Chief Executive Joanne Crevoiserat said the latest results "significantly outpaced expectations," boosted by Tapestry’s online business and heightened demand for its purses, shoes and other accessories in Asia.
Its overall revenue remains below 2019 levels, however. And according to BMO Capital Markets analyst Simeon Siegel, that puts Tapestry below a median of retailers who have reported their quarterly results, thus far.
Tapestry’s net income for the fiscal third quarter climbed to $91.7 million, or 32 cents per share, compared with a net loss of $677.1 million, or $2.45 per share, a year earlier.
Excluding one-time charges, Tapestry earned 51 cents per share, better than the 31 cents that analysts had forecast.
Net sales rose 19% to $1.27 billion from $1.07 billion a year earlier, beating analysts’ estimates of $1.22 billion.
The high-end handbag maker that also owns Kate Spade reported a triple-digit revenue increase in Mainland China compared with 2020 levels, and 40% growth compared with 2019.
The company said it is not providing detailed guidance for fiscal 2021. But assuming a continued recovery in its business coming out of the pandemic, it said it now expects revenue for the fiscal year to increase at a mid-teens rate. Analysts had been looking for year-over-year sales growth of 10%.
TPR shares faltered $2.22, or 4.6%, to $46.19.
