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Tapestry Misses Revenue Estimates on Surprise Drop in Coach Sales

The luxury goods maker said sales were hit by inventory issues and hurricanes in North America and typhoons in Asia.
Coach store | Source: Shutterstock
By
  • Reuters

NEW YORK, United States — Tapestry Inc, formerly Coach, posted weaker-than-expected quarterly sales, hurt by a surprise drop in comparable sales in its legacy unit.

Same-store sales at Coach — the company's biggest unit — fell 2 percent, while analysts had expected a 2 percent rise, according to research firm Consensus Metrix.

Tapestry, which houses the Coach, Kate Spade and Stuart Weitzman brands, said sales were hit by inventory issues and hurricanes in North America and typhoons in Asia.

The company posted net loss of $17.7 million, or 6 cents per share, in the quarter ended Sept. 30, compared with a profit of $117.4 million, or 42 cents per share, a year earlier.

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Tapestry took a $188 million charge related to its acquisition of Kate Spade.

Excluding one-time items, the company earned 42 cents, beating analysts' average estimate of 36 cents, according to Thomson Reuters I/B/E/S.

Net revenue rose 24.2 percent to $1.29 billion,while analysts on average had expected $1.31 billion.

By Gayathree Ganesan; editor: Saumyadeb Chakrabarty.

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