NYSE$TPR

Tapestry, Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Tapestry's Q4 revenue increased by 126% compared to the prior year, surpassing pre-pandemic levels, with GAAP EPS of $0.69 and non-GAAP EPS of $0.74.

Tapestry, Inc. reported strong Q4 results, with revenue exceeding pre-pandemic levels, driven by growth at Coach, strength in Digital, and strong trends in Mainland China. The company announced the reinstatement of its dividend and share repurchase programs, planning to return over $750 million to shareholders in Fiscal 2022.

  • Revenue increased by 126% compared to last year, exceeding pre-pandemic levels, driven by growth at Coach.
  • Digital maintained strength, growing over 35% versus prior year and over 200% as compared to pre-pandemic levels.
  • Mainland China posted strong trends, with sales growth of approximately 60% compared to FY20 and over 40% versus pre-pandemic levels.
  • Operating income growth and margin expansion were delivered ahead of both FY20 and FY19 for the fourth consecutive quarter.

Headline financials

Total Revenue

$1.62B

Previous: $715M+125.9%
EPS (adj)

$0.74

Previous: -$0.25+396.0%
Total Coach Stores

939

Previous: 958-2.0%
Total Kate Spade Stores

407

Previous: 420-3.1%
Capital Expenditures

$47.1M

Previous: $32.5M+44.9%
Free Cash Flow

$1.21B

Previous: -$71.6M+1789.9%
Net Income

$200M

Previous: -$294M+168.0%
Operating Income

$260M

Previous: -$280M+192.8%
Gross Profit

$1.17B

Previous: $499M+133.7%
Cash & Equivalents

$2.02B

Previous: $1.43B+40.5%
Total Assets

$8.38B

Previous: $7.92B+5.8%
Stock-Based Comp

$17.4M

Previous: $6.1M+185.2%

Revenue & EPS history

Tapestry · Revenue · Quarterly

$1.62B

Q4 2021+125.9%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Tapestry · $1.62B total across 3 segments · Q4 2021

  • Total Coach
    $1.19B+130.0%
  • Total Kate Spade
    $342M+108.3%
  • Stuart Weitzman
    $84.9M+157.3%

Forward guidance

The company expects revenue of approximately $6.4 billion, representing mid-teens growth versus the prior year on a 52-week, comparable basis, which would mark a record level of sales for the Company and Earnings per diluted share of $3.30 to $3.35, reflecting leverage to the bottom line.

Tailwinds

  • Revenue of approximately $6.4 billion, representing mid-teens growth versus the prior year on a 52-week, comparable basis, which would mark a record level of sales for the Company.
  • Net interest expense of approximately $65 million.
  • The Company anticipates paying down its July 2022 bonds at the end of Fiscal 2022.
  • Tax rate of approximately 18.5% assuming a continuation of current tax laws.
  • Earnings per diluted share of $3.30 to $3.35, reflecting leverage to the bottom line.

Headwinds

  • Financial results could differ materially from the current outlook due to a number of external events, including the potential for more widespread resurgences of the pandemic globally and resulting pressure on store traffic trends.
  • Further supply chain disruptions, including potential continued production and distribution delays as well as increased costs, not contemplated in the Company’s estimates.

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 Q4 2021

Historical avgQ4 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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