Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Coach owner Tapestry bets on summer shopping comeback as sales rebound

Stock MarketsMay 06, 2021 10:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A shopping bag from the luxury brand Coach is seen along Rodeo Drive in Beverly Hills, California, May 21, 2013. REUTERS/Fred Prouser 2/2

(Reuters) -Tapestry Inc returned to quarterly sales growth and forecast full-year numbers above analysts' estimates as the Coach handbag maker benefits from a strong rebound in demand for luxury goods in North America and China.

Encouraged by rapid vaccine rollouts in its key markets, the fashion group is launching a new line of Coach handbags and rearranging store shelves with more Stuart Weitzman sandals, pumps and wedding accessories in expectation of people returning to relatively normal lives, company executives said on a call with analysts.

The luxury industry took a major hit from pandemic lockdowns last year but is making a comeback as easing curbs and vaccinations make people more confident about venturing out and spending on high-end brands.

Tapestry (NYSE:TPR)'s estimate-beating third-quarter results mirrored European luxury names Louis Vuitton owner LVMH and Kering (PA:PRTP)'s Gucci, which also reported better-than-expected sales last month.

"We've seen vaccination efforts progressing, resulting in increasing consumer confidence... and improving in-store traffic trends," Tapestry Chief Executive Officer Joanne Crevoiserat said.

Tapestry, which also owns Kate Spade, said sales in North America returned to pre-pandemic levels, while revenue from Mainland China soared about 175% compared to a year ago and was 40% above 2019.

The New York-based company forecast full-year sales to rise by a mid-teens percent, above analysts' estimate of a 10% rise, according to IBES data from Refinitiv. It also forecast full-year earnings above 2019 levels.

However, Tapestry said it is experiencing shipping delays that are causing delays in products moving from design boards to shelves. The blockage in the Suez Canal earlier this year will have a modest impact on current quarter results, Tapestry said.

The company's shares, which have risen nearly 56% this year, fell 2%.

Tapestry's third-quarter net sales rose 19% to $1.27 billion beating analysts' expectations of $1.22 billion, while its adjusted profit of 51 cents per share, was above estimates of 31 cents.

Coach owner Tapestry bets on summer shopping comeback as sales rebound
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email