(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, 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’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.
(Reporting by Uday Sampath in Bengaluru; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty)
