Tapestry Shares Gain On Q1 Earnings Beat, Upbeat FY22 Outlook

Tapestry Inc TPR reported first-quarter FY22 sales growth of 26% year-on-year, to $1.48 billion, beating the analyst consensus of $1.44 billion. Sales rose 9% compared to pre-pandemic levels. Digital sales rose 50% Y/Y.
Non-GAAP EPS of $0.82 beat the analyst consensus of $0.70.
Gross profit rose 28.9% Y/Y to $1.07 billion, with the margin expanding 140 basis points to 72.2%.
The operating margin was 19.9%, and operating income for the quarter rose 46% Y/Y to $295 million.
Tapestry held $1.6 billion in cash and equivalents as of October 2, 2021. Net cash provided by operating activities totaled $21.8 million.
The company's board of directors approved an incremental $1 billion shares buyback plan.
Tapestry declared a cash dividend payment of $0.25 per common share, payable on December 27, 2021, to shareholders of record on December 3, 2021.
Outlook: Tapestry raised FY22 EPS guidance to $3.45 - $3.50 (prior view $3.30 - $3.35), exceeding the consensus of $3.36.
The company raised the FY22 sales outlook to be ~$6.6 billion (prior view $6.4 billion), surpassing the consensus of $6.42 billion.
Price Action: TPR shares are trading higher by 8.99% at $46.44 on the last check Thursday.

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