By Allison Prang
Tapestry Inc. on Thursday reported a higher second-quarter profit but results missed Wall Street estimates and same-store sales at its Kate Spade brand tumbled 11%.
The owner of the Coach and Kate Spade brands posted a profit of $254.8 million, or 88 cents a share, compared with $63.2 million, or 22 cents a share, for the comparable quarter a year earlier. A lower provision for income taxes and a 0.8% dip in selling, general and administrative expenses helped the company's profit.
On an adjusted basis, Tapestry said earnings were $1.07 a share, flat from the comparable quarter a year prior. Analysts polled by Refinitiv were expecting $1.11 a share.
Shares of Tapestry fell 12% in premarket trading.
Comparable-store sales at Coach rose 1% while comparable-store sales for Kate Spade fell 11%. Analysts polled by Consensus Metrix were expecting them to increase 1.8% for Coach and fall 3.3% for Kate Spade.
Net sales at the New York-based company climbed 0.9% to $1.8 billion. Analysts polled by Refinitiv were expecting $1.86 billion.
Capri Holdings Ltd., the owner of the Michael Kors and Jimmy Choo brands that also recently bought Versace, reported Wednesday that sales were flat when compared with the third quarter a year prior. Profit also declined.
Capri lowered its guidance for adjusted earnings for the fiscal year but raised its revenue estimate.
Write to Allison Prang at email@example.com