Tapestry Increased revenue by 26 percent to 1.48 billion dollars compared to last year; while compared to pre-pandemic levels, revenue grew 9 percent, representing continued sequential topline improvement fueled by improvements across digital, stores and wholesale.
Commenting on the first quarter results, Joanne Crevoiserat, chief executive officer of Tapestry, Inc., said: “Importantly, revenue trends accelerated compared to pre-pandemic levels driven by North America, as well as continued growth in digital and China - two key drivers of long-term opportunity. We are increasing our revenue and EPS outlook for the fiscal year, reflecting our first quarter performance and strong underlying business trends.”
Highlights of Tapestry’s first quarter
The company maintained strength in digital, with revenue growth of nearly 50 percent versus prior year and over 275 percent compared to pre-pandemic levels, while further improving sequential revenue trends in-stores on both - one and two-year basis.
Tapestry drove over 40 percent sales growth compared to last year in North America, representing a high-teens increase against pre-pandemic levels; realized an increase of over 25 percent in Mainland China, approximately 65 percent higher than pre-pandemic sales levels in FY20.
The company expanded gross margin by approximately 140 basis points compared to the prior year and over 450 basis points versus FY20, while gross profit totaled 1.07 billion dollars. Operating income was 295 million dollars on a reported basis, while operating margin was 19.9 percent, while on a non-GAAP basis, operating income was approximately 307 million dollars and operating margin was 20.7 percent.
Net income for the quarter was 227 million dollars on a reported basis, with earnings per diluted share of 80 cents, which compares to 232 million dollars and earnings per diluted share of 83 cents in the prior year period. On a non-GAAP basis, net income for the quarter was 235 million dollars with earnings per diluted share of 82 cents.
Tapestry raises outlook on strong Q1
Based on current underlying business trends, the company is increasing its outlook for fiscal 2022 and now expects revenue to reach 6.6 billion dollars, an increase from the prior outlook for 6.4 billion dollars.
The company expects earnings per diluted share of 3.45 dollars to 3.50 dollars, ahead of the prior guidance for 3.30 dollars to 3.35 dollars reflecting strong underlying business momentum and additional share repurchases.