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.

Earnings Calendar