NEW YORK, United States — Tapestry Inc, formerly Coach, forecast full-year sales above analysts' expectations on Tuesday after reporting a 31 percent jump in fourth-quarter revenue due to strong demand for Kate Spade handbags, sending its shares up about 3 percent.
The New York-based company last year added the Kate Spade brand to its portfolio and bought Stuart Weitzman three years ago to model itself into a multi-brand fashion house like rival Louis Vuitton.
The company said it sees sales in the range of $6.1 billion to $6.2 billion for fiscal 2019, beating the average analyst estimate of $6.08 billion, according to Thomson Reuters I/B/E/S.
It forecast profit of $2.70 to $2.80 per share for the year, slightly below the average estimate of $2.82 per share.
Tapestry cut down on flash sales of its Coach products and sold more items at full price to increase brand exclusivity, and applied the same strategies at Kate Spade.
Net income rose to $211.7 million, or 73 cents per share, in the fourth quarter ended June 30, from $151.7 million, or 53 cents per share, a year earlier.
Excluding one time items, the fashion house reported a profit of 60 cents, 3 cents more than the polled estimate.
Net sales rose 31 percent to $1.48 billion, edging past the average estimate of $1.47 billion.
By Nivedita Balu; Editor: Saumyadeb Chakrabarty.