Tapestry Q2 Earnings Top Estimates; Raises FY22 Outlook

  • Tapestry Inc 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversTrading IdeasGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!