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Jul 01, 2023
Tapestry Q4 2023 Earnings Report
Tapestry reported Q4 2023 results, with EPS increasing by over 20% and operating margin expanding significantly.
Key Takeaways
Tapestry, Inc. reported its fiscal fourth-quarter results, achieving revenue of $1.62 billion, in line with the prior year. The company's diluted EPS increased by over 20% to $0.95, driven by significant gross margin expansion. Tapestry also announced a definitive agreement to acquire Capri Holdings Limited.
Increased Fourth Quarter Diluted EPS by over 20% Versus Last Year to $0.95
Drove Significant Operating Margin Expansion in the Fourth Quarter Fueled by a Gross Margin Increase of 350 Basis Points Versus Last Year
Net sales totaled $1.62 billion, in-line with the prior year.
Expanded gross margin by 350 basis points in the fourth quarter, benefiting from lower freight expense and operational outperformance
Revenue by Segment
Forward Guidance
Tapestry provided its fiscal year 2024 outlook on a non-GAAP basis, projecting revenue approaching $6.9 billion and earnings per diluted share of $4.10 to $4.15.
Positive Outlook
- Revenue approaching $6.9 billion, which represents an increase of approximately 3% to 4% versus prior year on both a reported and constant currency basis
- Net interest expense of approximately $20 million
- Tax rate of approximately 20%
- Weighted average diluted share count of approximately 235 million shares
- Earnings per diluted share of $4.10 to $4.15, representing approximately 6% to 7% growth compared to the prior year.
Challenges Ahead
- No revenue or earnings contribution 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
- Continued gradual recovery in Greater China
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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