Tapestry, Inc. reported fourth quarter revenue of 1.6 billion dollars, representing 7 percent growth over FY19 pre-pandemic levels. Compared to last year, net sales increased approximately 1 percent on a reported basis.
For the fiscal year 2022, Tapestry achieved 6.7 billion dollars in revenue, representing an increase of over 15 percent compared to the prior year or 11 percent higher than FY19 pre-pandemic levels.
Commenting on the financial results, Joanne Crevoiserat, CEO of Tapestry, Inc., said, “We drove standout results this fiscal year and delivered accelerated revenue and profit growth across our portfolio – a direct reflection of the vibrancy of our brands and our team’s successful execution of the Acceleration Program.”
Highlights of Tapestry's Q4 results
On a comparable 13-week basis and excluding a two-point headwind from currency due to the appreciation of the U.S. dollar, revenue rose 9 percent compared to last year.
The company reported EPS increase of 8 percent and non-GAAP EPS growth of 20 percent versus prior year on a comparable 13-week basis and 29 percent ahead of FY19 pre-pandemic levels.
Net income was 189 million dollars on a reported basis, with earnings per diluted share of 75 cents. On a non-GAAP basis, net income for the quarter was 197 million dollars with earnings per diluted share of 78 cents.
Tapestry posts 8 percent earnings growth in FY22
The company also delivered 2 billion dollars in digital sales, more than tripling versus FY19 pre-pandemic and accounting for 30 percent of total revenue.
The company recorded EPS growth of approximately 8 percent compared to the prior year and delivered non-GAAP EPS increase of 20 percent versus prior year and growth of over 35 percent compared to FY19.
The company’s net income was 856 million dollars on a reported basis, with earnings per diluted share of 3.17 dollars and on a non-GAAP basis, net income for the year was 936 million dollars with earnings per diluted share of 3.47 dollars.
Tapestry expects FY23 revenue to increase in the range of 3 to 4 percent
Tapestry expects fiscal 2023 revenue in the area of 6.9 billion dollars. This represents an increase of 3 percent to 4 percent on a reported basis, which includes roughly 300 basis points of FX pressure. On a constant currency basis, revenue growth is expected to be approximately 6 percent to 7 percent.
The company also forecasts earnings per diluted share of 3.80 dollars to 3.90 dollars, representing double-digit growth compared to the prior year.
The company’s board of directors has approved a 20 percent increase to the company’s dividend, with a quarterly cash dividend of 30 cents per common share payable on September 26, 2022 to shareholders of record as of close of business on September 9, 2022 for an anticipated annual dividend rate of 1.20 dollars per share.