Tapestry, the parent company of Coach, Kate Spade, and Stuart Weitzman, reported a slight increase in revenue for fiscal year 2024.
- Coach achieved a 3% increase in sales, offsetting declines in other brands under Tapestry’s portfolio.
- Gross profit rose by 3.8%, with improvements in operational efficiency and lower freight costs contributing to this growth.
- International markets showed positive growth, with Europe leading at a 14% increase in revenue.
- Tapestry’s CEO expressed confidence in continued growth and strategic advancements for the future.
Tapestry, the parent company of luxury brands such as Coach, Kate Spade, and Stuart Weitzman, reported a modest 1% increase in total revenue for the fiscal year ending 29 June 2024, reaching $6.67bn (£5.17bn). This growth was primarily driven by a significant uptick in sales at Coach, which saw a 3% rise during the period.
The increase in Coach’s sales effectively balanced out the financial declines seen in the company’s other two major brands. Kate Spade experienced a revenue drop of 6%, while Stuart Weitzman faced a more substantial decrease of 14%. Despite these challenges, Tapestry’s overall financial outcomes were bolstered by a rise in gross profit to $4.89bn (£3.79bn), marking a 3.8% improvement over the previous year. This increase was facilitated by a gross margin of 73.3%, which benefited from operational efficiencies, reduced freight expenditures, and favourable foreign exchange movements.
Moreover, Tapestry’s international sales experienced robust growth. At a constant currency, international revenues increased by 6% during the year, featuring notable gains in Europe at 14%, followed by Asia and Japan at 9% and 5%, respectively. Greater China’s revenue rose by 3%, indicative of a well-strategised expansion in these markets.
Looking forward, Tapestry projects a continuation of this upward trajectory, aiming for a revenue target of approximately $6.7bn (£5.19bn) in the coming year, maintaining the 1% growth rate at constant currency. The company’s CEO, Joanne Crevoiserat, expressed satisfaction with the financial results, highlighting the successful execution of strategic goals and affirming the company’s commitment to long-term growth and value creation for shareholders.
In her own words, “Our fourth quarter results exceeded expectations, capping a successful year. We meaningfully advanced our strategic agenda in fiscal year 2024, delivering strong financial results against a dynamic backdrop. From this position of strength, we have a bold vision for the future and a steadfast commitment to drive growth and shareholder value for years to come.”
Tapestry remains poised for continued growth, leveraging strategic advancements and market expansion opportunities.
