Loading...
•
Jul 02, 2022
Tapestry Q4 2022 Earnings Report
Tapestry achieved record revenue and profit growth, reflecting brand vibrancy and successful execution of the Acceleration Program.
Key Takeaways
Tapestry, Inc. reported a strong fourth quarter and full-year fiscal 2022, with record annual sales of $6.7 billion and significant digital revenue growth. The company's focus on the consumer and successful execution of its Acceleration Program drove accelerated revenue and profit growth across its portfolio.
Fueled a fourth quarter record $1.6 billion in revenue, representing 7% growth over FY19 pre-pandemic levels.
Achieved non-GAAP EPS growth of 20% versus prior year on a comparable 13-week basis and 29% ahead of FY19 pre-pandemic levels.
Delivered $2.0 billion in Digital sales, more than tripling versus FY19 pre-pandemic and accounting for 30% of total revenue.
Recruited approximately 7.7 million new customers across channels in North America, representing a 10% increase versus prior year with growth in both stores and online.
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 in the area of $6.9 billion for Fiscal Year 2023. Earnings per diluted share of $3.80 to $3.90, representing double-digit growth compared to the prior year.
Positive Outlook
- Revenue growth is expected to be approximately 6% to 7% on a constant currency basis.
- Net interest expense of approximately $35 million.
- Tax rate of approximately 21.0%.
- Weighted average diluted share count of approximately 242 million shares, incorporating approximately $700 million of expected share repurchases.
- Earnings per diluted share of $3.80 to $3.90, representing double-digit growth compared to the prior year.
Challenges Ahead
- No further appreciation of the USD; 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 in the area of $6.9 billion. This represents an increase of 3% to 4% on a reported basis, which includes roughly 300 basis points of FX pressure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income