Tapestry, the owner of the Coach, Kate Spade, and Stuart Weitzman brands, posted a net income of $217 million, with earnings per diluted share of 92 cents. Bloomberg surveyed analysts who expected the company to report earnings of 88 cents per share.
The company’s net sales of 1.59 billion dollars fell by 2% on a reported basis in the fourth quarter.
Joanne Crevoiserat, CEO of Tapestry, commented on the trading results, saying, “Our fourth quarter results exceeded expectations, capping a successful year.” We made significant progress on our strategic plan in fiscal year 2024 by focusing relentlessly on driving innovation and consumer relationships, generating good financial performance despite a difficult landscape.”
Net sales for the year totaled $6.67 billion, up from $6.66 billion the previous year. Revenue climbed by 1 percent after adjusting for a currency headwind of about 110 basis points.
Gross profit for the year was $4.89 billion, with a gross margin of 73.3 percent. Operating income was reported at $1.14 billion, with an operating margin of 17.1 percent. On a non-GAAP basis, operating income was $1.25 billion, with an operating margin of 18.7%.
The company’s net income was $816 million, with earnings per diluted share of $3.50. Non-GAAP net income totaled $1 billion, with earnings per diluted share of $4.29.
Tapestry’s board of directors approved the return of 321 million dollars to shareholders in fiscal 2024 through dividend payments, for an annual dividend rate of 1.40 dollars per common share, a 17% increase over the previous year, and a dividend payout ratio of 39% on a reported basis.
Tapestry aims to record revenue of around 6.7 billion dollars in fiscal 2025, marking a reported increase over the previous year. On a constant currency basis, revenue is predicted to increase by about 1% over the previous year.
Operating margin is forecast to improve in the vicinity of 50 basis points and earnings per diluted share of 4.45 to 4.50 dollars, representing mid-single-digit growth compared to the previous year.
Tapestry aims to retain an annual dividend rate of $1.40 per common share in fiscal 2025. The board of directors declared a quarterly cash dividend of 35 cents per common share, payable on September 23, 2024, to shareholders of record as of the close of business on September 6, 2024.
