Perhaps Coach owner Tapestry's vision of a "Coachtopia" is coming to fruition after all, with strong sales at the flagship brand driving better-than-expected performance in its first fiscal quarter, which closed on September 28. The conglomerate's latest report touted a forecast of over $6.75 billion in revenue for this fiscal year, up more than 2% from last year's forecast.
According to WWD, Tapestry CEO Joanne Crevoiserat said in a statement, “Our first quarter results outperformed expectations, showcasing the brand magic and operational excellence that fuel our strategic growth agenda. "
Tapestry reported $1.51 billion in sales for the quarter, up from the $1.47 billion analysts originally forecasted. Coach led the growth with revenue expanding 1% to $1.2 billion. Another of the company's labels Stuart Weitzman, saw even more growth with revenue increasing 2% to $53.7 million.
Having just been honored by the CFDA for its Coachtopia line with the Amazon Innovation Award, Coach's renewed creative strategy has held strong for the wider company.
Vintage Coach is also seeing a revival among younger consumers who are buying up classic silhouettes and Y2K-era designs from the leather goods brand. Even contemporary models like the Tabby, the Brooklyn, and the Empire are seeing an uptick in popularity, as mid-tier luxury purchases attract today's price-conscious shoppers.
The news is a welcome boost after Tapestry's August report, which held expectations of near-flat annual growth. In October, the FTC also blocked the company in its $8.5 billion bid to acquire Capri Holdings, which would have added Michael Kors to the company's portfolio.
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