NYSE$TPR

Tapestry, Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Tapestry delivered record earnings, outperforming expectations driven by stronger margins.

Tapestry, Inc. reported record second quarter earnings, exceeding expectations despite a challenging environment. Revenue was $2.03 billion, and diluted EPS was $1.36. The company is raising its Fiscal 2023 earnings outlook.

  • Delivered record second quarter earnings despite a challenging backdrop.
  • Generated low-single-digit constant currency revenue growth outside of Greater China.
  • Reported gross margin above expectations and prior year.
  • Delivered earnings per diluted share ahead of expectations, resulting in growth compared to last year despite currency headwinds.

Headline financials

Total Revenue

$2.03B

Previous: $2.14B-5.4%
EPS (adj)

$1.36

Previous: $1.33+2.3%
Capital Expenditures

-$109M

Previous: -$71.7M-51.7%
Free Cash Flow

$221M

Previous: $246M-10.2%
Net Income

$330M

Previous: $318M+3.8%
Operating Income

$418M

Previous: $463M-9.6%
Gross Profit

$1.39B

Previous: $1.46B-4.7%
Cash & Equivalents

$830M

Previous: $1.26B-34.0%
Total Assets

$7.26B

Previous: $7.93B-8.5%
Stock-Based Comp

$19.7M

Previous: $18.6M+5.9%

Revenue & EPS history

Tapestry · Revenue · Quarterly

$2.03B

Q2 2023-5.4%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Tapestry · $2.03B total across 3 segments · Q2 2023

  • Total Coach
    $1.45B-4.9%
  • Total Kate Spade
    $490M-2.0%
  • Stuart Weitzman
    $85.4M-26.3%

Forward guidance

The Company is raising its Fiscal 2023 earnings outlook based on its operational outperformance in the second fiscal quarter, as well as favorability associated with a more moderate currency headwind than previously anticipated.

Tailwinds

  • Revenue of approximately $6.6 billion
  • Revenue is expected to grow approximately 2% to 3% over the prior year on a constant currency basis.
  • Net interest expense of approximately $30 to $35 million
  • Tax rate of approximately 20%
  • Earnings per diluted share of approximately $3.70 to $3.75

Headwinds

  • Revenue of approximately $6.6 billion, representing a slight decrease compared to the prior year due to approximately 300 basis points of FX pressure.
  • Continued gradual recovery in Greater China from Covid-related disruption
  • No further significant lockdowns or incremental supply chain pressures from the Covid-19 pandemic
  • No material worsening of inflationary pressures or consumer confidence
  • No benefit from the potential reinstatement of the Generalized System of Preferences (GSP).

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 2023

Historical avgQ2 2023

+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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