American firm Tapestry, Inc, the parent company of luxury brands such as Coach, Kate Spade, and Stuart Weitzman, has reported net sales of $6.67 billion in fiscal 2024 (FY24), showing a slight increase from $6.66 billion in the previous year. When excluding a currency headwind of approximately 110 basis points, the company achieved a 1 per cent increase in revenue compared to the prior year.

The company's gross profit reached $4.89 billion, resulting in a gross margin of 73.3 per cent. This is an improvement from the previous year's gross profit of $4.71 billion, with a gross margin of 70.8 per cent. The enhanced gross margin was attributed to a benefit of 130 basis points from lower freight expenses, operational improvements, and favourable foreign exchange rates, the company said in its FY24 results.

Tapestry's selling, general, and administrative expenses totalled $3.75 billion, representing 56.2 per cent of sales. The company reported an operating income of $1.14 billion, with an operating margin of 17.1 per cent. On a non-GAAP basis, operating income was higher at $1.25 billion, reflecting an operating margin of 18.7 per cent. These figures compare to the previous year's reported and non-GAAP operating income of $1.17 billion, with an operating margin of 17.6 per cent.

Net income for FY24 was $816 million, translating to earnings per diluted share of $3.50. On a non-GAAP basis, net income was $1 billion, with earnings per diluted share of $4.29. This is in contrast to the prior year's net income of $936 million and earnings per diluted share of $3.88 on both a reported and non-GAAP basis.

In the fourth quarter of fiscal 2024 (Q4 FY24), Tapestry experienced a slight decline in net sales, which totalled $1.59 billion compared to $1.62 billion in the same period of the previous year, representing a decrease of 2 per cent on a reported basis. However, when excluding a currency headwind of approximately 170 basis points, sales were nearly flat compared to the prior year.

The company’s gross profit for the quarter was $1.19 billion, with a gross margin of 74.9 per cent. This compares to the previous year's gross profit of $1.17 billion, which had a gross margin of 72.4 per cent. The higher gross margin in Q4 FY24 was supported by operational improvements, a benefit of approximately 90 basis points from lower freight expenses, and favourable FX rates.

Selling, general, and administrative expenses for the fourth quarter totalled $956 million, representing 60.1 per cent of sales on a reported basis. Tapestry’s operating income for Q4 FY24 was $235 million, with an operating margin of 14.8 per cent on a reported basis. On a non-GAAP basis, operating income was $262 million, reflecting an operating margin of 16.5 per cent. These figures are slightly lower than the prior year's reported and non-GAAP operating income of $274 million, with a 16.9 per cent operating margin.

Net income for the fourth quarter was $159 million, with earnings per diluted share of $0.68. On a non-GAAP basis, net income was $217 million, with earnings per diluted share of $0.92. In the same period of the previous year, net income was $224 million, with earnings per diluted share of $0.95 on both a reported and non-GAAP basis. The tax rate for Q4 FY24 was 20.7 per cent on a reported basis and 16.8 per cent on a non-GAAP basis, compared to a tax rate of 16.0 per cent in the prior year on both a reported and non-GAAP basis.

“Our fourth quarter results exceeded expectations, capping a successful year. This is a testament to our passionate global teams whose creativity and exceptional execution continue to fuel our brands and business. Importantly, through an unwavering focus on powering innovation and consumer connections, we meaningfully advanced our strategic agenda in fiscal 2024, delivering strong financial results against a dynamic backdrop. From this position of strength, we have a bold vision for the future and a steadfast commitment to drive growth and shareholder value for years to come,” said Joanne Crevoiserat, chief executive officer of Tapestry.

Fibre2Fashion News Desk (DP)