Tapestry, Inc · Q1 2021 earnings

Briefing

Tapestry's first quarter 2021 results were reported, demonstrating progress on the Acceleration Program with strong operating income and EPS growth.

Tapestry, Inc. reported strong first quarter results, exceeding expectations with significant profit growth, driven by digital and China strength, gross margin expansion, and SG&A expense control. The company generated positive free cash flow and ended the quarter with $1.5 billion in cash and equivalents.

• Delivered top and bottom line results materially ahead of expectations.
• Achieved sequential improvement in revenue trends across all brands.
• Drove a second consecutive quarter of triple-digit e-commerce growth versus prior year, while simultaneously improving global store sales trends.
• Significantly expanded gross margins by over 300 basis points driven in part by lower, more disciplined promotional activity.

Headline financials

Revenue & EPS history

Due to the dynamic nature of the Covid-19 crisis and lack of visibility, the potential financial impact to our business cannot be accurately projected. However, given the strong start to the fiscal year and assuming a continued steady recovery emerging from the pandemic, the Company continues to expect a topline inflection in the second half of the fiscal year, with both revenue and bottom line growth now projected for fiscal 2021.