(AOF) – In the fourth quarter of 2022/2023, the Tapestry fashion group generated net sales of $ 1.62 billion, in line with that of the previous year. Excluding a negative currency effect of 180 basis points due to the appreciation of the US dollar, sales increased by 1% compared to the previous year. The operating result amounts to 274 million dollars, while the operating margin is 16.9%. Net income was $224 million, with earnings per diluted share of 0.95 cents.
In the quarter, its gross revenue was $1.17 billion, while gross margin was 72.4%, reflecting a 200 basis point benefit from lower transportation costs, as well as operational improvements, partially offset by an unfavorable foreign exchange effect of 80 basis points.
By comparison, the prior year’s gross margin was $1.12 billion, a gross margin of 68.9%.
Over a year, his income is almost the same. Net sales for the year 2022/2023 amount to $6.66 billion, compared to $6.68 billion in 2021/2022.
In 2022/2023, Tapestry had annual net income of $936 million, with earnings per diluted share of $3.88. In 2022, net income was $856 million and earnings per diluted share were $3.17.
For 2023/2024, the group is targeting revenue close to $6.9 billion, representing an increase of approximately 3-4% over the prior year, both on a reported and at constant exchange rate.
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Market boom for several more years
According to Bain & Company, the global luxury market (fashion, cars, hotels, wines and spirits, cruises, etc.) will have recorded a 21% jump in sales in 2022, to 1,384 billion euros. The luxury personal products segment (jewellery, clothing, watches, leather goods, etc.) should grow by 22% and again grow by 3% to 8% in 2023 despite the expected economic slowdown. Growth should continue in the following years, with an increase that should reach 60% by 2030! According to Bain, spending by Americans in Europe has more than doubled between 2019 and 2022. This development is largely explained by a strong dollar. The Chinese market, on the other hand, is at half mast due to the “zero Covid” policy and strict confinements.