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Jul 03, 2021
Tapestry Q4 2021 Earnings Report
Tapestry's Q4 revenue increased by 126% compared to the prior year, surpassing pre-pandemic levels, with GAAP EPS of $0.69 and non-GAAP EPS of $0.74.
Key Takeaways
Tapestry, Inc. reported strong Q4 results, with revenue exceeding pre-pandemic levels, driven by growth at Coach, strength in Digital, and strong trends in Mainland China. The company announced the reinstatement of its dividend and share repurchase programs, planning to return over $750 million to shareholders in Fiscal 2022.
Revenue increased by 126% compared to last year, exceeding pre-pandemic levels, driven by growth at Coach.
Digital maintained strength, growing over 35% versus prior year and over 200% as compared to pre-pandemic levels.
Mainland China posted strong trends, with sales growth of approximately 60% compared to FY20 and over 40% versus pre-pandemic levels.
Operating income growth and margin expansion were delivered ahead of both FY20 and FY19 for the fourth consecutive quarter.
Revenue by Segment
Forward Guidance
The company expects revenue of approximately $6.4 billion, representing mid-teens growth versus the prior year on a 52-week, comparable basis, which would mark a record level of sales for the Company and Earnings per diluted share of $3.30 to $3.35, reflecting leverage to the bottom line.
Positive Outlook
- Revenue of approximately $6.4 billion, representing 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.
- The Company anticipates paying down its July 2022 bonds at the end of Fiscal 2022.
- Tax rate of approximately 18.5% assuming a continuation of current tax laws.
- Earnings per diluted share of $3.30 to $3.35, reflecting leverage to the bottom line.
Challenges Ahead
- Financial results could differ materially from the current outlook due to a number of external events, including the potential for more widespread resurgences of the pandemic globally and resulting pressure on store traffic trends.
- Further supply chain disruptions, including potential continued production and distribution delays as well as increased costs, not contemplated in the Company’s estimates.
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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