US-based Tapestry, Inc., parent company of luxury brands such as Coach, Kate Spade and Stuart Weitzman, has reported net sales of $6.67 billion for fiscal year 2024 (FY24), up slightly from $6.66 billion in the previous year. Excluding an adverse foreign exchange effect of approximately 110 basis points, the company achieved a 1% increase in revenue compared to the previous year.
Tapestry reported fiscal 2024 net sales of $6.67 billion, up 1 percent excluding the impact of foreign exchange. Gross profit improved to $4.89 billion, driven by lower freight costs and foreign exchange gains. Fiscal 2024 net income was $816 million, and fourth-quarter net sales decreased slightly to $1.59 billion. Fourth-quarter net income was $159 million, with earnings per diluted share of $0.68.
The company's gross profit reached $4.89 billion, resulting in a gross margin of 73.3 percent. This is an improvement from the prior-year gross profit of $4.71 billion, with a gross margin of 70.8 percent. The improved gross margin was attributed to a 130 basis point benefit from lower transportation expenses, operational improvements and favorable foreign exchange rates, the company said in its fiscal year 2024 results.
Tapestry's selling, general and administrative expenses were $3.75 billion, representing 56.2 percent of sales. The company reported operating profit of $1.14 billion, with an operating margin of 17.1 percent. On a non-GAAP basis, operating profit was higher at $1.25 billion, reflecting an operating margin of 18.7 percent. These figures compare to the prior year's reported non-GAAP operating profit of $1.17 billion, with an operating margin of 17.6 percent.
Net income for fiscal year 2024 was $816 million, resulting in earnings per diluted share of $3.50. On a non-GAAP basis, net income was $1.0 billion, with earnings per diluted share of $4.29. This compares to prior year net income of $936 million and earnings per diluted share of $3.88, on both a reported and non-GAAP basis.
In the fourth quarter of fiscal year 2024 (Q4 FY24), Tapestry experienced a slight decline in net sales, which totaled $1.59 billion compared to $1.62 billion in the same period last year, representing a 2 percent decrease on a reported basis. However, excluding a foreign exchange factor of approximately 170 basis points, sales were virtually unchanged compared to the prior year.
The company's gross profit for the quarter was $1.19 billion, with a gross margin of 74.9 percent. This compares to the prior-year gross profit of $1.17 billion, which had a gross margin of 72.4 percent. The higher gross margin in the fourth quarter of fiscal 2024 was supported by operational improvements, a benefit of approximately 90 basis points from lower transportation expenses, and favorable foreign exchange rates.
SG&A expenses for the fourth quarter totaled $956 million, representing 60.1 percent of sales as reported. Tapestry’s operating income for the fourth quarter of fiscal year 24 was $235 million, with an operating margin of 14.8 percent as reported. On a non-GAAP basis, operating income was $262 million, reflecting an operating margin of 16.5 percent. These figures are slightly lower than the prior year’s reported, non-GAAP operating income of $274 million, with an operating margin of 16.9 percent.
Net income for the fourth quarter was $159 million, with earnings per diluted share of $0.68. On a non-GAAP basis, net income was $217 million, with earnings per diluted share of $0.92. For the same period last year, net income was $224 million, with earnings per diluted share of $0.95, on both a reported and non-GAAP basis. The tax rate for the fourth quarter of fiscal year '24 was 20.7 percent on a reported basis and 16.8 percent on a non-GAAP basis, compared to a tax rate of 16.0 percent in the prior year, on both a reported and non-GAAP basis.
“Our fourth quarter results exceeded expectations and capped a successful year. This is a testament to our passionate global teams, whose creativity and exceptional execution continue to drive our brands and business. Importantly, through an unwavering focus on driving innovation and consumer connections, we significantly advanced our strategic agenda in fiscal 2024, delivering strong financial results in a dynamic environment. From this position of strength, we have a bold vision for the future and a firm commitment to drive growth and shareholder value in the years ahead,” he said. Joanne Crevoiserat, CEO of Tapestry.
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