Tapestry Q2 2023 Earnings Report
Key Takeaways
Tapestry, Inc. reported record second quarter earnings, exceeding expectations despite a challenging environment. Revenue was $2.03 billion, and diluted EPS was $1.36. The company is raising its Fiscal 2023 earnings outlook.
Delivered record second quarter earnings despite a challenging backdrop.
Generated low-single-digit constant currency revenue growth outside of Greater China.
Reported gross margin above expectations and prior year.
Delivered earnings per diluted share ahead of expectations, resulting in growth compared to last year despite currency headwinds.
Tapestry
Tapestry
Tapestry Revenue by Segment
Forward Guidance
The Company is raising its Fiscal 2023 earnings outlook based on its operational outperformance in the second fiscal quarter, as well as favorability associated with a more moderate currency headwind than previously anticipated.
Positive Outlook
- Revenue of approximately $6.6 billion
- Revenue is expected to grow approximately 2% to 3% over the prior year on a constant currency basis.
- Net interest expense of approximately $30 to $35 million
- Tax rate of approximately 20%
- Earnings per diluted share of approximately $3.70 to $3.75
Challenges Ahead
- Revenue of approximately $6.6 billion, representing a slight decrease compared to the prior year due to approximately 300 basis points of FX pressure.
- Continued gradual recovery in Greater China from Covid-related disruption
- No further significant lockdowns or incremental supply chain pressures from the Covid-19 pandemic
- No material worsening of inflationary pressures or consumer confidence
- No benefit from the potential reinstatement of the Generalized System of Preferences (GSP).
Revenue & Expenses
Visualization of income flow from segment revenue to net income