[vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”administrator,editor,author,armember”][vc_column][vc_column_text]
Yesterday, Tapestry Group, whose brands include Coach, raised its annual earnings forecast. Capri Holdings, on the other hand, announced disappointing third quarter results.
Yesterday, Tapestry Group revealed its annual earnings outlook for the full 2022-2023 fiscal year, which ends in late June, after exceeding expectations for the holiday season.
The Coach and Kate Spade owner now expects earnings per share of $3.70 to $3.75 for that fiscal year, up from a previous range of $3.60 to $3.70.
Sales for the 2022-2023 fiscal year are estimated at $6.6 billion, up from the previous forecast of $6.5 billion to $6.6 billion: “The company exceeded expectations during the key holiday season and delivered record earnings in the second quarter (ended Dec. 31, ed.) despite a challenging environment,” according to CEO Joanne Crevoiserat.
In North America, the company acquired nearly 2.6 million new customers in the second quarter ended December 31, who are part of the Y and Z generations. They transacted at higher average prices than the rest of the existing customer base.
“We also saw higher average spend across our customer base, which includes an increase in units per transaction, reflecting the growing appeal of our lifestyle offering,” she added.
Excluding China, direct-to-consumer sales grew mid-single digits in physical stores on a constant currency basis, with more customers turning to stores around the world.
EPS (earnings per share) rose to $1.36 in the second quarter ended December from $1.15 a year earlier.
The group said it expects less impact from currency fluctuations this year, but still expects more modest revenue growth for China.
A sharp decline for Capri Holdings
For its part, Capri Holdings (Michael Kors, Jimmy Choo…) posted a -6% drop in revenue in the third quarter, ended December 31, of its 2022-2023 fiscal year to just over $1.5 billion. Operating income was $236 million and net income was $225 million. Both are down from the same period last year.
The first two quarters (ending in September) of its off-year (ending in March) had shown growth between +8 and +9%, but this was not enough. The results of this penultimate quarter are more difficult than expected: “We were disappointed by the performance of our global wholesale business during the quarter, which led to a reduction in expenses and a decline in operating margin. We have begun to take steps to better align operating expenses with revenue trends by channel. At the same time, we will continue to make strategic investments to drive long-term growth,” said John Idol, the company’s president and chief executive officer.
The group’s shares have fallen 25% over the past two days.
Despite this, Rick Patel, CEO of investment bank Raymond James, said both Tapestry and Capri Holdings have done a “great job” of attracting a new, younger customer base, especially through social media and their websites. However, he acknowledged that the Coach brand has executed its go-to-market strategy better than Michael Kors.
Capri Holding, meanwhile, was praised by Bloomberg for its 2022 gender equality efforts, but it wasn’t enough to end the year on a strong financial performance.
Read also >Beauty: Estée Lauder sales fall, Bogart sales rise
Featured photo : ©Press[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Yesterday, Tapestry Group, whose brands include Coach, raised its annual earnings forecast. Capri Holdings, on the other hand, announced disappointing third quarter results.
Yesterday, Tapestry Group revealed its annual earnings outlook for the full 2022-2023 fiscal year, which ends in late June, after exceeding expectations for the holiday season.
The Coach and Kate Spade owner now expects earnings per share of $3.70 to $3.75 for that fiscal year, up from a previous range of $3.60 to $3.70.
Sales for the 2022-2023 fiscal year are estimated at $6.6 billion, up from the previous forecast of $6.5 billion to $6.6 billion: “The company exceeded expectations during the key holiday season and delivered record earnings in the second quarter (ended Dec. 31, ed.) despite a challenging environment,” according to CEO Joanne Crevoiserat.
In North America, the company acquired nearly 2.6 million new customers in the second quarter ended December 31, who are part of the Y and Z generations. They transacted at higher average prices than the rest of the existing customer base.
“We also saw higher average spend across our customer base, which includes an increase in units per transaction, reflecting the growing appeal of our lifestyle offering,” she added.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.[/vc_cta][vc_column_text]Featured photo : ©Press [/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
Yesterday, Tapestry Group, whose brands include Coach, raised its annual earnings forecast. Capri Holdings, on the other hand, announced disappointing third quarter results.
Yesterday, Tapestry Group revealed its annual earnings outlook for the full 2022-2023 fiscal year, which ends in late June, after exceeding expectations for the holiday season.
The Coach and Kate Spade owner now expects earnings per share of $3.70 to $3.75 for that fiscal year, up from a previous range of $3.60 to $3.70.
Sales for the 2022-2023 fiscal year are estimated at $6.6 billion, up from the previous forecast of $6.5 billion to $6.6 billion: “The company exceeded expectations during the key holiday season and delivered record earnings in the second quarter (ended Dec. 31, ed.) despite a challenging environment,” according to CEO Joanne Crevoiserat.
In North America, the company acquired nearly 2.6 million new customers in the second quarter ended December 31, who are part of the Y and Z generations. They transacted at higher average prices than the rest of the existing customer base.
“We also saw higher average spend across our customer base, which includes an increase in units per transaction, reflecting the growing appeal of our lifestyle offering,” she added.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.[/vc_cta][vc_column_text]Featured photo : ©Press[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
