By Carlo Martuscelli
Tapestry Inc. (TPR) on Tuesday reported a 15% rise in the fiscal third-quarter net income, as revenue increased following its acquisition of the Kate Spade brand.
The New York-based luxury fashion company earned a quarterly profit of $140.3 million, or 48 cents a diluted share, up from $122.2 million, or 43 cents a share, for the same period last year. Excluding items, Tapestry reported an adjusted profit of 54 cents a share for the quarter ended March 31, compared with an adjusted profit of 46 cents last year and analysts' forecasts of 50 cents.
Analysts expected a profit of $141 million, or 49 cents a share, according to FactSet.
Sales rose to $1.32 billion from $995.2 million. Analysts' forecasts called for $1.31 billion, according to FactSet.
Chief Executive Victor Luis said "Kate Spade contributed to our overall performance, as we made continued progress on our integration efforts including the realization of synergies and the execution of strategic initiatives."
For fiscal 2018, Tapestry projects operating income growth of at least 22% compared with the year before, driven by mid-single-digit organic growth as well as the Kate Spade purchase and synergies.
Tapestry also predicts earnings of $2.57 to $2.60 a share, an increase of about 19% to 21% for the year, as well as revenue growth of about 30%, to a range of $5.8 billion to $5.9 billion.
Write to Carlo Martuscelli at [email protected]