American fashion company Tapestry Inc., the parent company of Coach, Kate Spade, and Stuart Weitzman, released its earnings for the fiscal fourth quarter and year ended July 30, 2023. The company achieved international revenue growth of 13 percent in constant currency, with improvements in all key markets: +15 percent in Japan, +5 percent in Greater China, +7 percent in Europe, and notably, +36 percent in other Asia markets.
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North America, however, saw a 2 percent decline in revenue growth in the fiscal year, as aspirational luxury shoppers in the region continue to reduce their spending on new, non-essential items.
North American luxury fashion firms Ralph Lauren, Canada Goose, and Capri Holdings also reported a mixed bag of results for the first quarter 2024, with all three companies, however, noting strong growth in their respective Asian markets.
Consulting firm Bain and Company said in a report that while China’s luxury market is expected to show recovery only in the second half of 2023, Southeast Asia and South Korea “have been excelling in both growth and future potential.”
“We achieved record EPS this fiscal year, reinforcing the power of brand building, consumer-centric strategies, and disciplined execution. We drove revenue gains at constant currency, significant gross margin expansion, and double-digit EPS growth despite a rapidly shifting backdrop,” Joanne Crevoiserat, chief executive officer of Tapestry, Inc., said.
“Importantly, we meaningfully advanced our strategic priorities, engaging with consumers around the world through product excellence, unique storytelling, and distinctive omni-channel experiences. At the same time, we continued to invest in our brands and our data-rich customer engagement platform, which underpin our growth agenda.”
Tapestry, which last week announced its acquisition of American luxury rival Capri Holdings, owner of Michael Kors, Versace, and Jimmy Choo, said it expects to see the acquisition’s impact on the company’s long-term future.
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“The acquisition is expected to be immediately accretive to adjusted earnings and support enhanced cash flow and financial returns. By bringing together six iconic brands with a heritage in design and craftsmanship, and leveraging our modern consumer engagement platform, we will drive greater innovation, consumer connectivity, and cultural relevance, creating superior value for our consumers, employees, communities, and shareholders around the world,” said Crevoiserat.