“We are very pleased with our first quarter results, which exceeded expectations and demonstrated the bold actions we are implementing as part of our Acceleration Program. We delivered strong profit growth across our portfolio of brands in the face of an unprecedented and challenging backdrop. We drove a meaningful sequential improvement in topline trends, supported by strength in Digital and China", commented Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc..

First Quarter Results

In the first quarter, Tapestry's net sales totaled 1.17 billion US dollars as compared to 1.36 billion US dollars in similar period in the prior year, and resulting in a 14% decline. Operating income was 202 million US dollars on a reported basis, while operating margin was 17.3% versus operating income of 52 million US dollars and an operating margin of 3.8% in the prior year. Net income for the quarter totalled 232 million US dollars on a reported basis, with earnings per diluted share of 0.83 US dollars. This compared to net income of 20 million US dollars with earnings per diluted share of 0.07 US dollars in similar period in the prior year.

Coach

Net sales for the Coach brand totaled 875 million US dollars for the fiscal first quarter as compared to 966 million US dollars in the prior year, representing a decline of 9%. Operating income for Coach reacehd 270 million US dollars compared to reported operating income of approximately 200 million US dollars in the prior year, while operating margin was 30.8% versus 20.7% in the firts quarter of the previous fiscal year.

Kate Spade

Net sales for Kate Spade totaled 240 million US dollars for the fiscal first quarter as compared to 306 million US dollars in the prior year, representing a decline of 21%, which included the impact related to a strategic pullback in lower margin wholesale disposition sales. Operating income for Kate Spade reached 23 million US dollars on a reported basis, representing an operating margin of 9.6%. This compared to an operating loss of 7 million US dollars and an operating margin of (2.4)% on a reported basis in similar period a year ago.

Stuart Weitzman

Net sales for Stuart Weitzman totaled 56 million US dollars for the fiscal first quarter, which compares to 87 million US dollars in the same period of the prior year, representing a 35% decline. Operating profit was breakeven on a reported basis, representing an operating margin of 0.0%, compared to an operating loss of 19 million US dollars and operating margin of (22.2)% in the year ago period.