Tapestry is a New York-based company that houses lifestyle and accessories brands such as Kate Spade and Coach. In the second quarter of fiscal 2023, Tapestry reported a gross of $1.39bn, up from $1.46bn in the previous year. The company’s Q3 FY23 gross margin was 68.6 percent, compared with 68.1 percent in Q2 FY22.
Net sales fell by 5% from $2.14 billion the year before to $2.03 billion. Currency had a 380 basis-point impact on the company’s revenue. The company stated in a release that, excluding the currency impact, revenues declined by approximately 2 percent compared to last year.
In Q2 FY23, selling, general and administrative costs were $971 millions, or 47.9 percent of sales. This compares to $995 million in the previous year, which was 46.5 percent of sales.
Operating income in Q2 FY23 was 418 million dollars, with a margin of 20.6%. The operating income for Q2 FY23 was $418 million, with an operating margin of 20.6%.
The net income for the third quarter was $330 millions, and earnings per dilute share were $1.36. This compares to the reported net income in the previous year of $318millions, and earnings per dilute share of just $1.15.
Tapestry anticipates revenues of $6.6 billion in FY23. This represents a slight decline compared to last year. The main reason for this is the expected 300 basis-point pressure on FX. Revenue is expected to increase by approximately 2 to 3 percent on a constant-currency basis. The company expects to earn between $3.70 and $3.75 per share diluted.
