Tapestry ups fiscal year 2022 outlook
Tapestry, which owns luxury accessories and lifestyle brands Coach, Kate Spade and Stuart Weitzman has reported its results for the fiscal third quarter ended 2 April 2022.
The company has further increased its guidance and now expects to return about £1.6 billion to shareholders in fiscal 2022, up from £1.2 billion previous outlook.
In the third quarter the brand said that it delivered global sales "ahead of expectations despite a challenging external environment" with sales in North America offsetting a decline in Mainland China, due to pressures from the resurgence of COVID-19.
Q3 2022 financial results:
- 13% increase in revenue, with net sales of £1.2 billion against 2021
- Double-digit revenue increases at each brand
- Operating income of £138 million on a reported basis, with an operating margin of 11.8%
- Gross profit of £827 million
- Gross margins were 69.9%, and negatively impacted by incremental freight expense to maintain product flow
- Digital revenue growth of 20% vs 2021
Fiscal Year 2022 Outlook:
- Revenue of approximately £5.5 billion, which would mark a "record level of sales for the company"
- Net interest expense of approximately £51 million
Joanne Crevoiserat, Chief Executive Officer of Tapestry, said: “Our third quarter results significantly exceeded expectations led by continued strong growth in North America. We drove increased customer demand at Coach, Kate Spade and Stuart Weitzman, reflecting the vibrancy of each of our brands, the power of our platform and our team’s successful execution of our strategic initiatives.”
“We remain confident in our long-term growth opportunities and steadfast in our commitment to enhance value for our customers and shareholders.”
