Tapestry raises profit guidance on strong Q2

Tapestry’s net sales in the second quarter totaled 2.08 billion dollars, representing growth of 3 percent on both a reported and constant currency basis.

Gross profit totaled 1.49 billion dollars, while gross margin was 71.6 percent, net income was 322 million dollars and earnings per diluted share were 1.39 dollars. On a non-GAAP basis, net income was 377 million dollars, with earnings per diluted share of 1.63 dollars.

Commenting on the company’s performance, Joanne Crevoiserat, chief executive officer of Tapestry, Inc., said: “Our second quarter results exceeded expectations, highlighting the power of brand building and disciplined execution. Based on these results, we are raising our EPS outlook for the fiscal year.”

For fiscal 2024, the company’s revenue of approximately 6.7 billion dollars, is expected to increase 1 percent on a reported basis and 2 percent on a constant currency basis; and earnings per diluted share to be in the range of 4.20 dollars to 4.25 dollars, representing 8 percent to 9 percent growth.

The company’s board of directors declared a quarterly cash dividend of 35 cents per common share payable on March 25, 2024 to shareholders of record as of the close of business on March 8, 2024.

In the fiscal year, Tapestry continues to expect to return approximately 325 million dollars to shareholders through dividend payments for an anticipated annual dividend rate of 1.40 dollars per share, an increase of 17 percent from prior year.