Tapestry Stock Falls After Q4 Results, Reinstates Dividend At Lower Rate

Tapestry Inc TPR reported fourth-quarter FY21 sales growth of 126.6% year-on-year, to $1.62 billion, beating the analyst consensus of $1.56 billion.
On a 13-week basis, net sales increased 113% versus last year and rose 1% compared to pre-pandemic levels.
Digital sales rose 35% Y/Y.
Adjusted EPS of $0.74 beat the analyst consensus of $0.68.
Gross profit rose 133.7% Y/Y to $1.17 billion, with the margin expanding 240 basis points to 72.2%. Non-GAAP gross margin expanded 70 basis points to 71.7%.
The operating margin was 16.1%, and operating income for the quarter was $260 million versus $(280) million last year.
Tapestry held $2 billion in cash and equivalents as of July 3, 2021. Net cash provided by operating activities for the year totaled $1.3 billion.
Tapestry, which suspended its dividend and share repurchase programs in April, reinstated its shareholder return programs.
The company's quarterly cash dividend of $0.25 per share is payable on September 27, 2021, to shareholders of record on September 7, 2021. In March, the company had paid a dividend of $0.3375 per share.
Tapestry intends to repurchase about $500 million worth of stock in FY22, under its current authorization.
Outlook: Tapestry sees FY22 EPS $3.30 - $3.35 versus the consensus of $3.18.
The company expects FY22 sales to be ~$6.4 billion versus the consensus of $6.08 billion.
Price Action: TPR shares are trading lower by 3.14% at $40.16 on the last check Thursday.

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