Tapestry beat sales estimates as Kate Spade and Coach prove strong

Tapestry Inc has beaten Wall Street estimates for first quarter sales.  This is largely down to strong demand for Coach and Kate Spade handbags.

Net sales grew to $1.38 billion, which was above the expected $1.36 billion.

Coach sales, which make up over 70% of Tapestry’s overall sales, grew by 4% in the three months up to 29^th September.

Tapestry is also benefiting from lower tax rates.

Tapestry CEO Victor Luis said: “At the one year anniversary of establishing Tapestry as our new corporate identity, our results continue to reflect the benefits of our diversified multi-brand model. First quarter performance was consistent with our expectations as we achieved strong increases in sales and operating income, while earnings per share gains were further enhanced by a favorable tax rate.

“At Stuart Weitzman, trends improved from the prior quarter, though results, as anticipated, continued to be negatively impacted by development and delivery delays which pressured sales and margins."