Despite the decline in sales, the company saw an increase in gross profit, totaling $1.11 billion with a gross margin of 74.7 percent, up from $1.1 billion and a gross margin of 72.8 percent. percent from the previous year, the company said in a news release. .
Tapestry reported a slight decline in Q3FY24 net sales, falling to $1.48 billion, a 2 percent decline from $1.51 billion a year earlier. The company saw an increase in gross profit to $1.11 billion, achieving a gross margin of 74.7 percent. Operating income was $204 million with a reported margin of 13.8 percent. Net income was $139 million.
Selling, general and administrative expenses for the quarter totaled $903 million, representing 60.9 percent of sales. On a non-GAAP basis, selling, general and administrative expenses were slightly lower at $868 million or 58.6 percent of sales. This is a slight increase in the SG&A expense ratio from the previous year, where it accounted for 57.8 percent of sales.
Operating income for the third quarter of FY24 was $204 million as reported, with an operating margin of 13.8 percent. Non-GAAP numbers were stronger with $239 million in operating income and a 16.1 percent operating margin, improving from $226 million and a 15.0 percent operating margin last year.
Net income for the quarter was $139 million, translating to earnings per diluted share of $0.60. Adjusted for non-GAAP items, net income was up $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 exceeded expectations, reflecting our unwavering commitment to disciplined brand building and operational excellence. Our talented global teams continued to advance our long-term initiatives, driving innovation and consumer connections, while successfully leveraging the power of our customer engagement platform to navigate the dynamic context with focus and agility. Looking ahead, we are confident in our vision for the future and the important runway to drive sustainable growth and shareholder value,” he said. Joanne Crevoiserat, CEO of Tapestry.
Fiber2Fashion News Desk (DP)
