Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Shivani Kumaresan

Tapestry Q2 Earnings Top Estimates; Raises FY22 Outlook

  • Tapestry Inc (NYSE:TPR) reported second-quarter FY22 sales growth of 27% year-on-year, to $2.14 billion, beating the analyst consensus of $2.00 billion. Sales rose 18% compared to pre-pandemic levels.
  • Digital sales rose 30% Y/Y and nearly tripled compared to pre-pandemic levels.
  • Adjusted EPS of $1.33 beat the analyst consensus of $1.18.
  • Gross profit rose 24.2% Y/Y to $1.46 billion, with the margin contracting 150 basis points to 68.1%.
  • The operating margin declined 150 basis points to 21.6%, and operating income for the quarter was $463 million versus $389 million last year.
  • Tapestry held $1.6 billion in cash and equivalents as of January 1, 2022. Net cash provided by operating activities for the six months totaled $668.1 million.
  • The company anticipates an annual dividend rate of $1.00 per share, or about $270 million returned to shareholders in the fiscal year.
  • Tapestry forecasts the repurchase of $1.25 billion in common stock in the fiscal year, up from the prior outlook of $1 billion. 
  • Outlook: Tapestry raised FY22 EPS guidance to $3.60 - $3.65 from $3.45 - $3.50, above the consensus of $3.52.
  • The company raised the FY22 sales outlook to about $6.75 billion from the previous view of $6.6 billion versus the consensus of $6.59 billion.
  • Price Action: TPR shares are trading higher by 3.13% at $41.99 on the last check Thursday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.