Tapestry Inc ( TPR ) reported a third-quarter FY24 sales decline of 2% year-on-year to $1.482 billion, missing the analyst consensus estimate of $1.498 billion.

Excluding a currency headwind of approximately 160 basis points, sales were approximately even with the prior year.

Adjusted EPS of $0.81 beat the consensus estimate of $0.67.

Gross profit increased 1% Y/Y to $1.10 billion, with the margin expanding 190 basis points to 74.7%.

Operating margin contracted 120 basis points to 13.8%, and operating income for the quarter decreased 9.7% to $204.3 million.

Tapestry held $7.42 billion in cash and equivalents as of March 30.

Inventory at the end of the third quarter was $824 million versus $934 million last year. 

Tapestry’s Board of Directors declared a quarterly cash dividend of $0.35, payable on June 24 to shareholders of record as of the close of business on June 7. 

Operating cash flow for the quarter totaled $98 million, with a free cash flow of $79 million.

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Outlook: Tapestry still sees FY24 EPS of $4.20-$4.25 versus the consensus of $4.22.

The company expects FY24 sales of about $6.6 billion (previously $6.7 billion), against an estimate of $6.735 billion.

Price Action: TPR shares are trading lower by 2.57% at $37.98 in premarket at the last check Thursday.