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Tapestry forecasts sales above estimates as luxury demand rebounds

imageStock Markets8 minutes ago (May 06, 2021 07:43AM ET)

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(C) Reuters. FILE PHOTO: A shopping bag from the luxury brand Coach is seen along Rodeo Drive in Beverly Hills, California, May 21, 2013. REUTERS/Fred Prouser

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(Reuters) -Tapestry Inc on Thursday forecast full-year sales to rise more than analysts’ estimates, as the Coach handbag maker benefits from a strong rebound in demand for luxury goods in North America and China.

After a year of decline in sales, Tapestry (NYSE:TPR), which also owns Kate Spade and Stuart Weitzman, reported a 19% rise in quarterly net sales as widespread vaccinations in the United States makes people more confident about spending on high-end goods.

The company’s net sales of $1.27 billion beat analysts’ average expectation of $1.22 billion, according to IBES data from Refinitiv. Sales in Mainland China rose about 175%.

Tapestry’s European peers including Louis Vuitton owner LVMH, Hermes and Kering (PA:PRTP)’s Gucci last month signaled the comeback for the broader luxury goods industry as COVID-19 restrictions in major markets ease and people come back to stores.

Tapestry forecast full-year sales to rise by a mid-teens percentage, compared with analysts’ average estimate of a 10% rise. It also forecast full-year earnings above 2019 levels.

Tapestry forecasts sales above estimates as luxury demand rebounds

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