New York City-based fashion house Tapestry Inc. (formerly known as Coach Inc.) has announced financial results for the second quarter of the current financial year.
The fashion retailer’s net sales surged by 35 per cent on both reported and constant currency basis to US $ 1.79 billion during the reporting quarter as compared to US $ 1.32 billion in the corresponding quarter of the previous fiscal.
For the second quarter, the modern luxury accessories and lifestyle retailer’s gross profit stood at US $ 1.18 billion on a reported basis. On the non-GAAP basis, gross profit remained US $ 1.30 billion.
Tapestry’s net income on the reported basis dropped drastically to settle at US $ 63 million as compared to the reported net income of US $ 200 million in the same period previous fiscal. Net income on a non-GAAP basis reached US $ 306 million as against non-GAAP net income of US $ 211 million in the corresponding period of last fiscal.
Further, Victor Luis, Chief Executive Officer of the company pronounced the buyback of Coach’s retail business in Australia and New Zealand from its distributors. It will establish a Tapestry Hub and centre of excellence in Sydney to drive growth.
The company, which owns labels such as Coach, Kate Spade and Stuart Weitzman, now expects to note a 30 per cent increase in its revenue to US $ 5.8 to US $ 5.9 billion and 22-25 per cent increase in operating income during the year 2018.