“We delivered record sales this holiday quarter, highlighted by an inflection at Kate Spade, ongoing momentum at Coach, and a return to pre-pandemic revenue levels at Stuart Weitzman. The combination of bold initiatives, compelling product, and effective execution enabled us to win with consumers across our brands. Based on these results, we are raising our revenue, operating income, and EPS guidance for the fiscal year (…) As we look ahead, we see significant growth opportunities and remain committed to creating value for all stakeholders”, commented Joanne Crevoiserat, Chief Executive Officer of Tapestry.

Second Quarter 2022 Results

In the second quarter of fiscal 2022, Tapestry’s net sales totalled 2.14 billion US dollars, as compared to net sales of 1.69 billion US dollars in the prior year, which represents growth of 27%. On a comparable basis to fiscal 2020 (pre-pandemic levels), sales increased by 18%.

Net sales for Coach in this period reached 1.53 billion US dollars, as compared to 1.23 billion US dollars in the second quarter of the previous year. Kate Spade posted net sales of 500.4 million US dollars, as compared to net sales of 375.6 million US dollars in the same period of fiscal 2021. Net sales for Stuart Weitzman added up to 115.8 million US dollars, as compared to net sales of 84.5 million US dollars in similar period of the prior year.

The company noted that digital sales grew by approximately 30% in the second quarter of the current fiscal year, on a comparable basis to the same period of last year, and nearly tripled as compared to pre-pandemic levels.

In the three-month period which ended on the 1^st of January 2022, gross margin corresponded to 68.1%, reflecting negatively the impact of “incremental freight expense in order to maintain product flow to meet consumer demand”.

Net income for the second quarter of fiscal 2022 totalled 318 million US dollars, on a reported basis, with earnings per diluted share of 1.15 US dollars, as compared to 311 million US dollars and earnings per diluted share of 1.11 US dollars in the prior quarter of fiscal 2021.

Fiscal year 2022 Outlook

For the fiscal year 2022, Tapestry is now expecting revenue of approximately 6.75 billion US dollars, which reflects an improvement from the prior outlook of 6.6 billion US dollars. Earnings per diluted share should range between 3.60 US dollars and 3.65 US dollars, ahead of the prior guidance for earnings per diluted share between to 3.45 US dollars to 3.50 US dollars.