Loading...
•
Oct 02, 2021
Tapestry Q1 2022 Earnings Report
Tapestry's first quarter results for fiscal year 2022 were reported, demonstrating revenue growth and increased customer engagement.
Key Takeaways
Tapestry, Inc. reported a strong first quarter in fiscal 2022, with revenue increasing by 26% compared to the prior year and 9% compared to pre-pandemic levels. The company's performance was driven by growth in North America, Digital, and China. As a result, Tapestry raised its FY22 revenue and EPS outlook.
Revenue increased by 26% compared to the prior year and 9% versus FY20 pre-pandemic levels.
Gross margin increased by approximately 140 basis points year-over-year and over 450 basis points compared to FY20 pre-pandemic levels.
Operating income and margin exceeded last year, FY20, and expectations.
The Board of Directors approved a new $1 billion share buyback authorization.
Tapestry
Tapestry
Tapestry Revenue by Segment
Revenue by Segment
Coach Revenue
CapyFin.comKate Spade Revenue
CapyFin.comStuart Weitzman Revenue
CapyFin.com Forward Guidance
Tapestry is increasing its outlook for Fiscal Year 2022, expecting revenue to approach $6.6 billion and earnings per diluted share of $3.45 to $3.50 on a non-GAAP basis.
Positive Outlook
- Revenue now approaching $6.6 billion, an increase from the prior outlook for $6.4 billion.
- This represents mid-teens growth versus the prior year on a 52-week, comparable basis, which would mark a record level of sales for the Company.
- Net interest expense of approximately $65 million.
- Tax rate of approximately 18.5% assuming a continuation of current tax laws.
- Earnings per diluted share of $3.45 to $3.50, ahead of the prior guidance for $3.30 to $3.35 reflecting strong underlying business momentum and additional share repurchases.
Challenges Ahead
- The ongoing dynamic nature of the Covid-19 pandemic could cause financial results to differ materially from the current outlook.
- Potential for more widespread resurgences of the pandemic globally and resulting pressure on store traffic trends.
- Further supply chain disruptions, including potential continued production and distribution delays.
- Increased costs not contemplated in the Company’s estimates.
- Weighted average diluted share count in the area of 278 million, incorporating $1 billion in share repurchase activity throughout Fiscal 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income