Before the merger: complicated quarterly financial reports for Tapestry and Capri

Before the merger: complicated quarterly financial reports for Tapestry and Capri

The financial statements of the two groups that made the news cycle for their merger was – to put it lightly -, shadowy for the April to June period. Tapestry did worse than forecasted, while Capri Holdings published numbers better than expected by analysts, but still below those of the buyer. Weighing down both entities during the period was the North American market. The quarterly reports were published just a few days ago before the announcement for the 8.5 billion USD deal entered the news cycle: Tapestry (Coach, Kate Spade, Stuart Weitzman) bought Capri Holdings (Michael Kors, Versace and Jimmy Choo).

Complicated quarterly reports


During the April-June 2023 quarter, Tapestry’s sales amounted to 1.620 billion USD, against the 1.625 billion of the previous year’s comparable period. Wall Street had forecasted 1.653 billion USD. Coach’s revenue grew 3%, while Kate Spade’s decreased 10% and Stuart Weitzman’s -13%. Net income amounted to 224 million USD (95 cents per share), up from the 189 million USD of the same period of 2022. During the fiscal year (July 2022 – June 2023), Tapestry reached a turnover of 6.66 billion USD, nearly identical to the 6.68 billion of the previous fiscal year. Net income for the year was 936 million USD, up from the 856 million of the previous comparable period. Coach’s sales increased 1%, Kate Spade’s decreased 25% and Stuart Weitzman lost 11%. Joanne Crevoiserat, CEO of Tapestry, highlighted the solid performance of small leather goods and handbags, especially that of the Tabby model (source WWD). Forecasts for the fiscal year 2024 are also currently below expectations.

Capri Holdings

During the quarter being considered, Capri Holdings’ sales decreased 9.6% to 1.23 billion USD, and yet they were higher than the consensus, set at 1.2 billion USD. Net income was just 48 million USD, from the 201 million of the previous comparable period. That being said, according to FactSet, ratified earning per share amounted to 74 cents, up from the 71 cents forecasted by analysts (source WWD). During the quarter, Versace’s sales lost 5.8% to set at 259 million USD, while Jimmy Choo’s increased 6.4 % to 183 million. Michael Kors’ shrank by 13.8% to 787 million USD. The company provided no explanation for the reduced turnover. Given the acquisition, Capri is now exempted from publishing financial statements for the coming quarter and fiscal year 2024.

Read also:


Choose one of our subscription plans

Do you want to receive our newsletter?
Subscribe now