Net sales were $2.03 billion, a 5 per cent decline from the prior year’s $2.14 billion. The company’s revenue was impacted by a 380-basis-point headwind from currency. Excluding the currency impact, revenue declined approximately 2 per cent compared to the prior year, the company said in a press release.

Tapestry, a leading New York-based house of accessories and lifestyle brands, has reported a gross profit of $1.39 billion in the second quarter (Q2) of fiscal 2023 (FY23), compared to the prior year’s gross profit of $1.46 billion. The company’s gross margin in Q3 FY23 was 68.6 per cent, compared to the gross margin of 68.1 per cent in Q2 FY22.

Selling, general, and administrative expenses in Q2 FY23 were $971 million, representing 47.9 per cent of sales, compared to the prior year’s reported selling, general, and administrative expenses of $995 million, which represented 46.5 per cent of sales.

Operating income for Q2 FY23 was $418 million, with an operating margin of 20.6 per cent. This compares to the prior year’s reported operating income of $463 million and operating margin of 21.6 per cent.

Net income for the quarter was $330 million, with earnings per diluted share of $1.36, compared to the prior year’s reported net income of $318 million and earnings per diluted share of $1.15.

Tapestry expects revenue of approximately $6.6 billion for FY23, representing a slight decrease compared to the prior year, primarily due to an expected 300-basis-point FX pressure. On a constant currency basis, revenue is expected to grow approximately 2-3 per cent over the prior year. The company also expects earnings per diluted share of approximately $3.70 to $3.75.

Fibre2Fashion News Desk (DP)