Photo: Darrel Hunter Tapestry said revenue fell 5 per cent to $2.03 billion in the second quarter of 2023 ended 31 December 2022, but stronger-than-expected gross margins and less exposure to wholesale in the US prompted the company to raise its full-year outlook, outperforming analyst expectations. Shares rose 9.93 per cent in pre-market trading on Thursday, following a 4.47 per cent dip in after-hours trading on Wednesday night, after rival Capri Holdings revealed a “disappointing” quarter due to weak wholesale demand. Tapestry, which owns Coach, Kate Spade and Stuart Weitzman, said it now expects revenue to reach $6.6 billion, at the top end of its previous guidance of $6.5-$6.6 billion. The updated outlook assumes, among other things, that the US dollar does not further appreciate; that Greater China will continue to gradually recover; and that inflationary pressures and consumer confidence don’t worsen materially. Tapestry had lowered its forecast in the first quarter after currency pressures and China-related disruptions weighed on results. Tapestry CEO Joanne Crevoiserat said the company’s omnichannel strategy and focus on its direct-to-consumer channel has paid off. DTC sales increased by the low-single digits during the quarter (excluding Greater China), and now make up 90 per cent […]
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