Luxury brand company Tapestry reported nearly flat sales for its fiscal first quarter, citing a negative impact from foreign-currency exchange. The company, which owns renowned brands like Kate Spade and Coach, posted a profit of $195 million, or 84 cents a share, for the three-month period that ended on September 30. This compares to a profit of $195.3 million, or 79 cents a share, in the same period last year.
Strong Earnings Beat Expectations
Adjusted earnings per share came in at 93 cents, surpassing analysts’ expectations of 90 cents per share, according to a FactSet survey. However, sales figures fell short of estimates. Tapestry reported a modest 0.4% increase in sales, bringing the total to $1.51 billion. Analysts had anticipated sales of $1.54 billion.
Mixed Performance Across Brands
The Coach brand experienced a 3% increase in sales, but both Kate Spade and Stuart Weitzman saw declines. Kate Spade’s sales dropped by 6% and Stuart Weitzman’s sales fell by 19%. The company noted that excluding the impact of currency exchange rates, overall sales would have actually risen by approximately 2%.