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Dec 30, 2023
Tapestry Q2 2024 Earnings Report
Tapestry delivered record revenue and EPS and raised fiscal 2024 EPS outlook.
Key Takeaways
Tapestry, Inc. reported record Q2 revenue of $2.1 billion and EPS, driven by brand building and disciplined execution. The company raised its fiscal year 2024 EPS outlook based on these strong results.
Delivered revenue of $2.1 billion, representing 3% growth compared to the prior year.
Drove a Gross Margin Increase of 300 Basis Points Versus Last Year
Achieved Diluted EPS of $1.39 on a Reported Basis, Up 3% Versus Last Year, and $1.63 on a Non-GAAP Basis, Up 20% Versus Last Year
Generated robust operating and free cash flow of over $800 million, above prior year
Tapestry
Tapestry
Tapestry Revenue by Segment
Revenue by Segment
Coach Revenue
CapyFin.comKate Spade Revenue
CapyFin.comStuart Weitzman Revenue
CapyFin.com Forward Guidance
Tapestry expects revenue of approximately $6.7 billion, representing an increase in the area of 1% on a reported basis and 2% on a constant currency basis. Earnings per diluted share of $4.20 to $4.25, representing 8% to 9% growth compared to the prior year; Free cash flow of approximately $1.1 billion, excluding deal-related costs.
Positive Outlook
- Revenue of approximately $6.7 billion, representing an increase in the area of 1% on a reported basis and 2% on a constant currency basis
- Net interest expense of approximately $20 million
- Tax rate of approximately 20%
- Weighted average diluted share count of approximately 233 million shares
- Free cash flow of approximately $1.1 billion, excluding deal-related costs
Challenges Ahead
- No revenue or earnings contribution or deal-related costs related to the proposed acquisition of Capri Holdings Limited, which is expected to close in calendar 2024
- No further appreciation of the U.S. Dollar; information provided based on spot rates at the time of forecast
- A gradual recovery in Greater China
- 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