Tapestry Inc. (NYSE: TPR) stock rose over 12% on 14th August,2018 (Source: Google Finance) as investors were pleased with the group’s clear focus on executing the strategic vision. The Net Sales increased by 31% mainly due to the acquisition of Kate Spade and Organic Growth. The Earnings per Diluted Share increased 36% on a GAAP basis to $0.73 and 21% on a Non-GAAP basis to $0.60. The Net sales totalled $1.48 billion as compared to $1.13 billion in the last year. The Gross profit summed up to $1.00 billion whereas the Gross margin was 67.6% which was 1.1% more than prior year period.
SG&A expenses totalled $816 million and represented 55.0% of sales which is more than 0.55 more than the last year. On a non-GAAP basis, SG&A expenses were $781 million which is 52.7% of sales. The operating income was $187 million while the operating margin was 12.6% which is 4.4% less than the last year period. On a non-GAAP basis, operating income was $228 million, an increase of 27% ,while operating margin was 15.3% which is 0.5% more than last year period. Net interest expense stood at $14 million which remained same from the last year. Net income was $212 million with earnings per diluted share os$0.73, the reported tax rate was 22.5% which is 10% percent more than the last year. Inventory was $674 million which was $204 million high than the prior year period.
As per segment revenue, the Net Sales for Coach summed up to $1.10 billion with an increase of 5% on a reported basis and 3% on a constant currency basis. Gross profit totalled $762 million while gross margin was 69.3%. SG&A expenses totalled $478 million on non-GAAP basis while the SG&A expenses as a percentage of sales were 43.5% which is 0.4% more than the prior period. The operating income was $284 million while operating margin was 25.8% .
Net sales for Kate Spade summed up to $312 million, gross profit was $205 million while the gross margin is 65.5%. SG&A expenses was $181 million and representing 57.9%. Operating income is $24 million with an operating margin of 7.6%.
Net sales for the Stuart Weitzman summed up to $73 million which was $15 million less than last year. Gross profit is $37 million while the gross margin was 50.3% which is 5.9% more than last year. SG&A expenses were $57 million representing 78.6% of sales, where the operating income was a loss of $21 million.