Dec 26, 2020

Tapestry Q2 2021 Earnings Report

Holiday quarter exceeded expectations and underscored the power of the acceleration program.

Key Takeaways

Tapestry, Inc. reported fiscal 2021 second quarter results that significantly outpaced expectations, driven by the successful execution of their Acceleration Program, with a sharpened focus on the consumer, new customer acquisition across all brands, and notable sales gains in Digital and China. The company generated strong operating income growth supported by a reduction in promotional activity and higher AUR, as well as disciplined inventory and expense management.

Achieved significant sequential improvement in revenue trends across all brands, led by North America

Drove triple-digit e-commerce growth versus prior year, with digital representing approximately one-third of global sales, including nearly half of revenue in North America

Posted over 30% year-over-year revenue growth in Mainland China

Increased gross margin, primarily driven by lower, more disciplined promotional activity, resulting approximately 300 basis points of improvement year-over-year

Total Revenue
$1.69B
Previous year: $1.82B
-7.2%
EPS
$1.15
Previous year: $1.1
+4.5%
Gross Profit
$1.17B
Previous year: $1.21B
-3.0%
Cash and Equivalents
$1.65B
Previous year: $1.17B
+41.6%
Free Cash Flow
$633M
Previous year: $506M
+25.1%
Total Assets
$8.15B
Previous year: $8.7B
-6.3%

Tapestry

Tapestry

Tapestry Revenue by Segment

Forward Guidance

Tapestry expects revenue for the fiscal year to increase at a high-single digit rate on a 52-week basis and in the area of 10% on 53-week basis.

Revenue & Expenses

Visualization of income flow from segment revenue to net income