Gross profit reached $4.71 billion, with a gross margin of 70.8 per cent, reflecting a benefit from lower freight expense and operational improvements. This was partially offset by an FX headwind, resulting in a growth from last year’s gross profit of $4.65 billion and a gross margin of 69.6 per cent, Tapestry said in a press release.
Tapestry reported FY23 net sales of $6.66 billion, slightly down from $6.68 billion in FY22.
Excluding currency effects, revenue rose 3 per cent.
Gross profit was $4.71 billion, with net income at $936 million.
Q4 sales were $1.62 billion, with net income of $224 million.
Operational improvements contributed to growth despite currency headwinds.
The company’s selling, general, and administrative expenses totalled $3.54 billion in FY23, or 53.1 per cent of sales, compared to $3.47 billion or 52.0 per cent of sales in the previous year. Operating income was at $1.17 billion, with an operating margin of 17.6 per cent. Net income was $936 million, with earnings per diluted share of $3.88, compared to $856 million and $3.17 in the prior year. The tax rate was 18.1 per cent, similar to the previous year.
In the fourth quarter of fiscal 2023 (Q4 FY23), net sales were $1.62 billion, in line with the prior year. Excluding currency effects, revenue increased by 1 per cent YoY. Gross profit was $1.17 billion, with a gross margin of 72.4 per cent, compared to $1.12 billion and 68.9 per cent in the previous year.
Selling, general, and administrative expenses were $899 million or 55.5 per cent of sales in Q4 FY24, and operating income was $274 million with an operating margin of 16.9 per cent. Net income for Q4 stood at $224 million, with earnings per diluted share of $0.95, compared to $189 million and $0.75 in the prior year period.
“We achieved record EPS this fiscal year, reinforcing the power of brand building, consumer-centric strategies, and disciplined execution. We drove revenue gains at constant currency, significant gross margin expansion, and double-digit EPS growth despite a rapidly shifting backdrop. Importantly, we meaningfully advanced our strategic priorities, engaging with consumers around the world through product excellence, unique storytelling, and distinctive omni-channel experiences. At the same time, we continued to invest in our brands and our data-rich customer engagement platform, which underpin our growth agenda,” said Joanne Crevoiserat, chief executive officer of Tapestry.
Fibre2Fashion News Desk (DP)