American fashion firm Tapestry's gross profit at $1.39 bn in Q2 FY23

Net sales were $2.03 billion, a 5 per cent decline from the prior year's $2.14 billion. The company's revenue was impacted by a 380-basis-point headwind from currency. Excluding the currency impact, revenue declined approximately 2 per cent compared to the prior year, the company said in a press release.

Selling, general, and administrative expenses in Q2 FY23 were $971 million, representing 47.9 per cent of sales, compared to the prior year's reported selling, general, and administrative expenses of $995 million, which represented 46.5 per cent of sales.

Operating income for Q2 FY23 was $418 million, with an operating margin of 20.6 per cent. This compares to the prior year's reported operating income of $463 million and operating margin of 21.6 per cent.

Net income for the quarter was $330 million, with earnings per diluted share of $1.36, compared to the prior year's reported net income of $318 million and earnings per diluted share of $1.15.

Tapestry expects revenue of approximately $6.6 billion for FY23, representing a slight decrease compared to the prior year, primarily due to an expected 300-basis-point FX pressure. On a constant currency basis, revenue is expected to grow approximately 2-3 per cent over the prior year. The company also expects earnings per diluted share of approximately $3.70 to $3.75.

ALCHEMPro News Desk (DP)