Tapestry Inc (NYSE:TPR) shares hiked in Thursday trading after reporting upbeat Q3 profit.
The New York-based Tapestry, a leading New York-based house of modern luxury accessories and lifestyle brands, today reported net sales totaled $1.33 billion for the third fiscal quarter as compared to $1.32 billion in the prior year, an increase of 1% on a reported basis and 2% in constant currency.
Gross profit totaled $916 million on a reported basis, while gross margin for the quarter was 68.8% compared to $908 million and 68.6%, respectively, in the prior year. On a non-GAAP basis, gross profit totaled $921 million, while gross margin was 69.2% as compared to $912 million and 68.9%, respectively, in the prior year.
Net income for the quarter was $117 million on a reported basis, with earnings per diluted share of $0.40. This compared to net income of $140 million with earnings per diluted share of $0.48 in the prior year period. The reported tax rate for the quarter of (23.4)% compared to the prior year reported rate of 1.3%.
CEO Victor Luis said, "We are pleased with our third quarter performance, highlighted by increases in sales and gross margin on a constant currency basis in each of our three brands.
"Most notably, we again drove positive comps at Coach and generated a significant sequential comp improvement at Kate Spade with Nicola Glass’s new collection resonating with consumers globally."
Shares climbed $2.56, or 8.3%, to $33.31
