Despite the sales dip, the company saw an increase in gross profit, totaling $1.11 billion with a gross margin of 74.7 per cent, up from $1.10 billion and a gross margin of 72.8 per cent in the prior year, the company said in a media release.
Tapestry reported a slight decline in Q3 FY24 net sales, dropping to $1.48 billion, a 2 per cent decrease from the previous year’s $1.51 billion.
The company saw an increase in gross profit to $1.11 billion, achieving a gross margin of 74.7 per cent.
Operating income was $204 million with a reported margin of 13.8 per cent.
Net income was $139 million.
Selling, general and administrative expenses for the quarter totalled $903 million, representing 60.9 per cent of sales. On a non-GAAP basis, Selling, general and administrative expenses were slightly lower at $868 million or 58.6 per cent of sales. This is a slight increase in Selling, general and administrative expense ratio from the prior year, where it accounted for 57.8 per cent of sales.
Operating income for Q3 FY24 stood at $204 million on a reported basis with an operating margin of 13.8 per cent. The non-GAAP figures were more robust at $239 million in operating income and a 16.1 per cent operating margin, improving from $226 million and a 15.0 per cent operating margin last year.
Net income for the quarter was reported at $139 million, translating to earnings per diluted share of $0.60. Adjusted for non-GAAP items, net income was higher at $190 million, or $0.81 per diluted share, compared to $187 million and $0.78 per diluted share in the prior year period.
“Our third quarter earnings results outperformed expectations, reflecting our unwavering commitment to disciplined brand building and operational excellence. Our talented global teams continued to advance our long-term initiatives, fuelling innovation and consumer connections, while successfully harnessing the power of our customer engagement platform to navigate the dynamic backdrop with focus and agility. Moving forward, we are confident in our vision for the future and the significant runway to drive sustainable growth and shareholder value,” said Joanne Crevoiserat, Chief Executive Officer of Tapestry.
Fibre2Fashion News Desk (DP)