October 30, 2018 / 10:54 AM / 15 days ago

Tapestry tops sales estimates as Coach handbags draw shoppers

Tapestry Inc. logo and trading information are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 13, 2018. REUTERS/Brendan McDermid

(Reuters) - Tapestry Inc (TPR.N) topped Wall Street estimates for first-quarter sales on Tuesday, helped by stronger demand for Coach and Kate Spade handbags.

Sales at Coach, which makes up over 70 percent of Tapestry’s overall sales, rose 4 percent in the three months ended Sept. 29.

In an effort to maintain its exclusivity, Tapestry has been pulling inventory from department stores and cutting back on flash sales.

The fashion house, also known for Stuart Weitzman footwear, is also benefiting from lower tax rates.

Tapestry said quarterly net income was $122.3 million, compared with a loss of $17.7 million a year earlier.

Excluding one-time items, the company earned 48 cents per share, exceeding analysts’ average estimate of 45 cents, according to Refinitiv data.

Net sales rose to $1.38 billion, above analysts’ expectations of $1.36 billion.

(This story corrects to “first-quarter” from “third-quarter” in paragraph one)

Reporting by Aishwarya Venugopal and Jaslein Mahil in Bengaluru; Editing by Saumyadeb Chakrabarty and Sai Sachin Ravikumar

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