November 7, 2017 / 5:43 PM / 12 days ago

BRIEF-Tapestry's Q1 gross margins pressured on Kate Spade integration

Nov 7 (Reuters) - Tapestry Inc

* Tapestry CEO - Co on track to drive double-digit growth for the year at Stuart Weitzman -conf call

* Tapestry CEO - Q1 gross margins were negatively impacted by about 130 basis points due to addition of Kate Spade -conf call

* Tapestry - Q1 impacted by higher SG&A due to an increase in Coach brand expenses versus prior year on lower level of sales, addition of Kate Spade

* Tapestry - Inventory levels at quarter-end were $853 million, including about $283 million associated with Kate Spade

* Tapestry - Expect to reduce outstanding borrowings to $1.9 billion by end of fiscal 2018 with repayment of an $800 million, 6-month term loan with excess cash

* Tapestry - experienced disruption to Jacksonville, Florida distribution center in Q1, which services all of co’s North America business due to hurricanes

* Tapestry Executive - “With those factors once in play (hurricanes, typhoons), we estimate that our global comp would’ve been positive in the quarter (Q1)”

* Tapestry CFO- Kate Spade’s synergies are split evenly between cost of goods sold and SG&A of co Further company coverage:

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