U.S. Tapestry Fiscal 2022 Net Sales Increase 16% YoY to $6.68 Billion

New York-based multinational luxury fashion holding company Tapestry, Inc. reported net sales totaled $6.68 billion for the full year (fiscal fourth quarter and fiscal year ended July 2, 2022) vs. $75 billion the previous year, representing a year-over-year increase of 16% on a reported basis. On a comparable 52-week basis and excluding a 50 basis point currency headwind, revenue was up 19% year over year. Compared to pre-pandemic levels for fiscal 2019, sales were up 11%.

Tapestry is the parent company of luxury brands Coach, Kate Spade and Stuart Weitzman. The company’s gross profit totaled $4.65 billion on a reported, non-GAAP basis, while gross margin was 69.6%, according to a press release. As expected, the company’s gross margin was negatively impacted by higher transportation costs, which totaled $178 million or 260 basis points. The previous year, reported gross profit was $4.08 billion, while gross margin was 71.0%. On a non-GAAP, 52-week comparable basis, prior year gross profit was $4.01 billion, while gross margin was 70.9%.

Tapestry’s operating profit was $1.18 billion on a reported basis, while the operating margin was 17.6%. This compares to operating income of $968 million the previous year and an operating margin of 16.8%. On a non-GAAP basis, operating profit was $1.22 billion, while operating margin was 18.2%, which compares to operating profit of 1.07 billion and an operating margin of 18.8% in the prior year on a comparable 52-week basis.

US luxury fashion company Tapestry, Inc. reported net sales totaled $6.68 billion for the full year, up from $5.75 billion a year earlier, up 16 % year-on-year. On a comparable 52-week basis and excluding a 50 basis point currency headwind, revenue was up 19% year over year. Compared to pre-pandemic levels in fiscal year 2019, sales increased by 11%.

Net income was $856 million on a reported basis, with diluted earnings per share of $3.17. That compares to net income of $834 million and diluted earnings per share of $2.95 a year earlier. The reported tax rate for the year was 18.2% compared to 7.0% the previous year. On a non-GAAP basis, net income for the year was $936 million with diluted earnings per share of $3.47. That compares to non-GAAP net income of $816 million with diluted earnings per share of $2.88 a year earlier on a 52-week comparable basis. The non-GAAP tax rate for the full year was 18.1%, compared to 17.9% a year earlier.

SG&A (sales, general and administrative) expenses totaled $3.47 billion on a reported basis and represented 52.0% of sales, compared to $3.11 billion and 54.2%, respectively, in the year former. On a non-GAAP, 52-week comparable basis, SG&A expenses were $3.43 billion and accounted for 51.3% of sales, compared to $2.94 billion and 52.1%, respectively, the previous year.

Debt extinguishment was a loss of $54 million on a reported basis, related to premiums, amortization and fees associated with the $500 million cash tender completed in the second quarter in fiscal 2022. Net interest expense was $59 million versus $71. million the previous year. In addition, other expenses were $16 million, largely representing a foreign exchange loss associated with the strengthening US dollar. That compares to another $1 million in revenue the previous year, the statement added.

“Through an unwavering focus on the consumer, supported by our transformed and diversified business model, we increased AUR, reached $2 billion in global digital sales and acquired 7.7 million new customers in North America alone. North in fiscal year 22,” said Joanne Crevoiserat, CEO of Tapestry, Inc.. “Looking ahead, we see an important avenue for long-term growth as we leverage our powerful mix of iconic brands amplified by a data-rich platform that enhances our ability to build lasting relationships with our customers.”

Fibre2Fashion News Office (NB)

Ann J. Cox