Tapestry Inc. net sales fell 2 percent to USD 1.48 billion in the third quarter, with Asia-Pacific growth offsetting declines in North America.
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The owner of Coach, Stuart Weitzman, and Kate Spade, said international sales grew 3 percent, held up by Asia, which was up 15 percent, with special mention given to Malaysia and Korea markets for growth.
Elsewhere, Japan lifted 2 percent and Greater China dipped 2 percent. The U.S. company did note, however, that it is experiencing strong brand positioning and engagement in China, which it sees as a key long-term opportunity.
“Our third quarter earnings results outperformed expectations, reflecting our unwavering commitment to disciplined brand building and operational excellence,” said Joanne Crevoiserat, chief executive officer of Tapestry, Inc.
“Our talented global teams continued to advance our long-term initiatives, fueling innovation and consumer connections, while successfully harnessing the power of our customer engagement platform to navigate the dynamic backdrop with focus and agility. Moving forward, we are confident in our vision for the future and the significant runway to drive sustainable growth and shareholder value.”
Meanwhile, Tapestry’s USD 8.5 billion buyout of Michael Kors owner Capri is being sued by U.S. antitrust regulator, Federal Trade Commission, saying it would eliminate “direct head-to-head competition” between the flagship brands.
In response, Tapestry said it was “confident in the merits and pro-competitive, pro-consumer nature” of the transaction and was working to close the deal in calendar year 2024.