NYSE$TPR

Tapestry, Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Holiday quarter exceeded expectations and underscored the power of the acceleration program.

Tapestry, Inc. reported fiscal 2021 second quarter results that significantly outpaced expectations, driven by the successful execution of their Acceleration Program, with a sharpened focus on the consumer, new customer acquisition across all brands, and notable sales gains in Digital and China. The company generated strong operating income growth supported by a reduction in promotional activity and higher AUR, as well as disciplined inventory and expense management.

  • Achieved significant sequential improvement in revenue trends across all brands, led by North America
  • Drove triple-digit e-commerce growth versus prior year, with digital representing approximately one-third of global sales, including nearly half of revenue in North America
  • Posted over 30% year-over-year revenue growth in Mainland China
  • Increased gross margin, primarily driven by lower, more disciplined promotional activity, resulting approximately 300 basis points of improvement year-over-year

Headline financials

Total Revenue

$1.69B

Previous: $1.82B-7.2%
EPS (adj)

$1.15

Previous: $1.10+4.5%
Capital Expenditures

-$49.7M

Previous: -$122M+59.3%
Free Cash Flow

$261M

Previous: $177M+48.0%
Net Income

$311M

Previous: $299M+4.1%
Operating Income

$389M

Previous: $363M+7.2%
Gross Profit

$1.17B

Previous: $1.21B-3.0%
Cash & Equivalents

$1.64B

Previous: $897M+83.1%
Total Assets

$8.15B

Previous: $8.7B-6.3%
Stock-Based Comp

$14.9M

Previous: $16.7M-10.8%

Revenue & EPS history

Tapestry · Revenue · Quarterly

$1.69B

Q2 2021-7.2%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Tapestry · $1.69B total across 3 segments · Q2 2021

  • Total Coach
    $1.23B-3.5%
  • Total Kate Spade
    $376M-12.7%
  • Stuart Weitzman
    $84.5M-27.0%

Forward guidance

Tapestry expects revenue for the fiscal year to increase at a high-single digit rate on a 52-week basis and in the area of 10% on 53-week basis.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.2%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.7%

Avg return

30 days after

56%

40 / 71 earnings

Positive

+18.8%

Q3 2022

Best reaction

-20.2%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.7%-12.0%-6.0%
Q2 2026+10.2%+17.9%+11.0%
Q1 2026-9.5%-6.7%+6.4%
Q3 2025+3.6%+11.8%+5.6%
Q2 2025+12.0%+10.9%+2.1%
Q1 2025+4.9%+2.8%+25.1%
Q4 2024+6.4%+6.4%+12.6%
Q3 2024+2.8%+8.0%+11.3%
Q2 2024+4.1%+5.8%+16.7%
Q1 2024+2.4%+11.1%+22.1%
Q4 2023+0.8%-14.2%-22.7%
Q3 2023+10.9%+12.8%+14.9%
Q2 2023+2.8%+4.4%-4.3%
Q1 2023+13.3%+12.0%+16.6%
Q4 2022-0.8%-1.6%+2.1%
Q3 2022+18.8%+24.5%+23.3%
Q2 2022-3.8%+0.0%-15.6%
Q1 2022+6.9%+7.0%+1.5%
Q4 2021-2.1%+4.5%-2.6%
Q3 2021+1.5%-3.9%-11.7%
Q2 2021+8.5%+10.8%+21.1%
Q1 2021+4.3%+12.9%+36.1%
Q4 2020+2.1%-1.7%+3.5%
Q3 2020-11.1%-13.4%-20.2%
Q2 2020-1.5%+0.7%-23.6%
Q1 2020-2.2%+2.7%-4.0%
Q4 2019-20.2%-15.8%+0.7%
Q3 2019+4.9%+0.1%-1.6%
Q2 2019-13.9%-10.1%-14.7%
Q1 2019+3.7%+4.9%-6.8%
Q4 2018+9.7%+8.3%+5.3%
Q3 2018-13.8%-14.2%-18.7%
Q2 2018+11.4%+9.1%+15.5%
Q1 2018-3.4%-1.6%+1.2%
Q4 2017-15.0%-15.7%-13.1%
Q3 2017+10.1%+10.1%+19.2%
Q2 2017+5.1%+2.2%+6.8%
Q1 2017-1.2%-1.5%+1.1%
Q4 2016-4.5%-5.1%-9.7%
Q3 2016+4.5%
Q2 2016+12.7%
Q1 2016+2.2%
Q4 2015+4.3%
Q3 2015-9.0%
Q2 2015+2.0%
Q1 2015-6.5%
Q4 2014+2.3%
Q3 2014-11.4%
Q2 2014-6.1%
Q1 2014-10.4%
Q4 2013-8.2%
Q3 2013+11.2%
Q2 2013-16.1%
Q1 2013+6.0%
Q4 2012-17.7%
Q3 2012-4.0%
Q2 2012+7.9%
Q1 2012-0.4%
Q4 2011+1.2%
Q3 2011+0.9%
Q2 2011+0.7%
Q1 2011-0.5%
Q4 2008-1.7%
Q4 2010-1.7%
Q3 2010-6.5%
Q3 2009-6.5%
Q2 2010-3.5%
Q2 2009-3.5%
Q1 2009+3.5%
Q4 2009+3.5%
Q1 2010+3.5%

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