Tapestry reported quarterly earnings and revenue that beat analysts’ expectations on Tuesday, driven by strong performance in North America.
The owner of Kate Spade, Coach and Stuart Weitzman reported fiscal fourth-quarter net income of $211.7 million, or 73 cents per share, up from $151.7 million, or 53 cents per share a year earlier.
Excluding items, Tapestry earned 60 cents per share, topping the 57 cents per share expected by analysts surveyed by Thomson Reuters.
Net sales rose 31 percent to $1.48 billion, beating expectations of $1.47 billion.
Shares of the company were rose more than 2 percent in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Thomson Reuters:
- Earnings per share: 60 cents, adjusted, vs. 57 cents expected
- Revenue: $1.48 billion vs. $1.47 billion expected
Founder of Tapestry’s Kate Spade brand was found dead in June in New York in an apparent suicide, stoking nostalgia for the brand.
Tapestry bought Kate Spade last year in a $2.4 billion deal, but has struggled to rein in the heavy discounting that have come to mark the brand. To help reestablish the quirky hand bag’s position as affordable luxury, rather than a mass product, it has been focusing on selling more of them in department stores, rather outlets.
Tapestry said Tuesday the Kate Spade’s fourth quarter results “exceeded” its expectation on both the top and bottom line.
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