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UPDATE 1-Coach owner raises 2022 forecasts as strong demand outshines supply crunch

UPDATE 1-Coach owner raises 2022 forecasts as strong demand outshines supply crunch

reuters.com · 11/11/2021 06:55
UPDATE 1-Coach owner raises 2022 forecasts as strong demand outshines supply crunch

Adds details on results, background

- Coach handbag maker Tapestry Inc TPR.N raised its annual sales and profit forecasts on Thursday, boosted by a strong rebound in demand for luxury goods even as global supply chain bottlenecks threaten to create a shortage of products.

Shares of the Stuart Weitzman owner rose 10% in premarket trade, as Tapestry also announced a new $1 billion share buyback program.

The luxury goods industry has bounced back sharply this year from pandemic-driven weakness in 2020, as consumers return to socializing and splurging on their wardrobes.

Tapestry's peers including Ralph Lauren Corp RL.N and Michael Kors Owner Capri Holdings Ltd CPRI.N also lifted their annual sales forecasts earlier this month, despite concerns that global supply chain bottlenecks will create a product shortage during the holiday season.

Tapestry, which also owns Kate Spade, forecast 2022 revenue of nearly $6.6 billion, compared with a previous forecast of about $6.4 billion.

It also raised its 2022 adjusted earnings per share range to $3.45 to $3.50 from $3.30 to $3.35.


(Reporting by Aditi Sebastian and Uday Sampath in Bengaluru; Editing by Shinjini Ganguli)

((aditi.sebastian@thomsonreuters.com;; outside U.S. +91 7760 787 976;))