Tapestry Inc., the parent company of Coach, Kate Spade, and Stuart Weitzman, reported impressive holiday sales and raised its full-year revenue and earnings forecasts. The company's performance contrasts sharply with that of its former merger partner, Capri Holdings (formerly Michael Kors), which recently reported declining sales.
Tapestry 's shares surged following the company's announcement of robust holiday sales and an upward revision of its full-year outlook. This positive news comes less than two months after Tapestry , the parent company of Coach , called off its proposed merger with fashion accessories competitor Capri. The fashion and accessories giant revealed its expectation for full-year revenue exceeding $6.85 billion, representing an approximate 3% increase compared to the previous year.
Furthermore, the company anticipates earnings per share ranging from $4.85 to $4.90. Previously, Tapestry had projected full-year revenue exceeding $6.75 billion and earnings per share between $4.50 and $4.55.The aborted merger would have united America's two largest luxury houses, bringing together Tapestry's Coach, Kate Spade, and Stuart Weitzman brands with Capri's Versace, Jimmy Choo, and Michael Kors. Tapestry's performance stands in stark contrast to Capri's recent results. Capri reported a decline in sales for both Versace and Michael Kors during their holiday quarter, announced on Wednesday. CEO John Idol acknowledged some missteps during the company's earnings call, including a reduction in lower-priced accessories that attracted new customers.Tapestry's fiscal second quarter, ending December 28, showed strong performance compared to Wall Street expectations, according to an LSEG analyst survey. Revenue reached $2.20 billion, surpassing the anticipated $2.11 billion. Coach remained the company's top performer during the holiday quarter, with revenue increasing by 11% year-over-year. Kate Spade and Stuart Weitzman, however, experienced weaker results, reporting revenue declines of 10% and 15%, respectively. During the company's earnings call on Thursday, Tapestry CFO Scott Roe stated that the full-year guidance incorporates the impact of an additional 10% tariff on goods imported from China into the U.S., effective February 4. He emphasized that this is not expected to significantly affect the company's results, as Tapestry has limited manufacturing operations in China. Roe had previously disclosed on Tapestry's early November earnings call that less than 10% of the company's sourcing originates from China
Tapestry Coach Kate Spade Stuart Weitzman Holiday Sales Revenue Earnings Merger Capri Holdings Michael Kors Versace Jimmy Choo
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