“We delivered another quarter of solid performance, reflecting strong customer engagement and increased demand for our brands. 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. Tapestry’s standout results highlight our teams’ extraordinary execution and the foundational changes we’ve made to transform into a more consumer-centric, data-driven, and responsive organization through the pillars of our Acceleration Programme”, commented Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc.

First Quarter 2022 Results

In the first quarter of fiscal 2022, which ended on the 2^nd of October 2021, Tapestry’s revenue increased by 26%, reaching 1.48 billion US dollars, as compared to 1.17 billion US dollars in the same quarter of fiscal 2021.

Net sales for Coach reached 1.11 billion US dollars, as compared to 875.4 million dollars in the first quarter of the prior year. Kate Spade posted net sales of 299.5 million US dollars, as compared to 240.4 million US dollars in the same period of fiscal 2021. Net sales for Stuart Weitzman amounted to 66.5 million US dollars, as compared to 56.4 million US dollars in similar period last year.

Online revenue grew by nearly 50% in this first quarter of 2022, as compared to the same period last year, and by over 275%, as compared to pre-pandemic levels.

On a comparable basis to the first quarter of last year, sales increased by more than 40% in North America, representing a high-teens rise against pre-pandemic levels. In Mainland China, sales grew by over 25% this quarter, and by approximately 65%, as compared to pre-pandemic sales levels.

In the first quarter of fiscal 2022, gross margin widened by approximately 140 basis points to 72.2%, as compared to the same period of the prior year, and by over 450 basis points, as compared to the first quarter of fiscal 2020, despite supply chain disruptions that resulted in higher freight costs.

Net income for the first quarter totalled 227 million US dollars on a reported basis, with earnings per diluted share of 0.80 dollars, as compared to 232 million US dollars net income and earnings per diluted share of 0.83 in the first quarter of last year.

Fiscal Year 2022 Outlook

For the fiscal year of 2022, Tapestry is now expecting revenue of approximately 6.6 billion US dollars, as compared to the prior outlook of 6.4 billion US dollars. Earnings per diluted share should range between 3.45 dollars to 3.50 dollars, ahead of the previous guidance for 3.30 dollars to 3.35 dollars.