Tapestry Q3 2023 Earnings Report
Key Takeaways
Tapestry, Inc. reported strong third-quarter results, exceeding expectations with revenue growth of 5% on a reported basis and 9% on a constant currency basis. The company expanded both gross and operating margins and increased diluted EPS by over 50% compared to the previous year. Tapestry is raising its Fiscal 2023 revenue and earnings outlook due to its outperformance in the third fiscal quarter.
Tapestry acquired over 1.2 million new customers in North America.
The company delivered approximately 10% Direct-to-Consumer revenue growth at constant currency.
Tapestry reported gross margin above expectations and 290 basis points ahead of the prior year.
Tapestry maintained tight inventory control, ending the quarter with inventory levels 2% above the prior year.
Tapestry
Tapestry
Tapestry Revenue by Segment
Forward Guidance
Tapestry is raising its Fiscal 2023 revenue and earnings outlook due to its outperformance in the third fiscal quarter.
Positive Outlook
- No further appreciation of the U.S. Dollar; information provided based on spot rates at the time of forecast.
- 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