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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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