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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.
Revenue by Segment
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.
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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