Fourth quarter net sales at Tapestry totaled 1.62 billion dollars, representing a 126 percent increase. The company’s net sales increased by 113 percent over the previous year, and rose 1 percent when compared to pre-pandemic levels.
The company said, net income for the quarter was 200 million dollars on a reported basis, with earnings per diluted share of 69 cents compared to a net loss of 294 million dollars with a loss per diluted share of 1.06 dollars in the prior year period. Non-GAAP earnings per share were 65 cents on a 13-week basis. This compares to a non GAAP net loss of 70 millions dollars and a loss per share of 25cs in the previous year.
“We achieved a record annual operating margin as Tapestry, outperforming our expectations across Coach, Kate Spade and Stuart Weitzman, while investing for our future. Tapestry, Inc. chief executive officer Joanne Crevoiserat said that the year was highlighted by a strong fourth quarter, which saw revenue surpassing pre-pandemic levels due to digital and China. “This is two areas of significant opportunity,” she stated.
Review of Tapestry’s fourth quarter results Gross profit was 1.16 Billion dollars on a non-GAAP basis. Gross margin was 71.7 Percent compared to the prior year gross profit, 507 million dollars, and gross margin of 71%.
Operating income was 260 million dollars on a reported basis, while operating margin was 16.1 percent versus an operating loss of 280 million dollars and an operating margin of 39.2 percent in the prior year. Operating income was about 272 million dollars on a non-GAAP base, and operating margin was 16.9 per cent. This compares to an operational loss of 70 million dollars in the previous year, and an operating margin that was negative 9.8 percent.
Highlights of Tapestry’s full year results Net sales increased by 14 percent over the previous year, but declined 6 percent when compared to fiscal 2019.
Gross profit for the year totaled 4.08 billion dollars on a reported basis, while gross margin was 71 percent compared to prior year reported gross profit of 3.24 billion dollars and gross margin of 65.3 percent. Gross profit was 4.07 Billion dollars on a non-GAAP base, with gross margin 70.9 percent, compared to the prior year gross profit (3.36 Billion dollars) and gross margin (66.7%).
Operating income for the year was 968 million dollars on a reported basis, while operating margin was 16.8 percent versus an operating loss of 551 million dollars and an operating margin of negative 11.1 percent in the prior year. Operating income was 1.10 Billion dollars on a non-GAAP basis. Operating margin was 19.1 Percent. This compares to 438 Million dollars in operating income and 8.8 percent in prior years.
The company added that net income for the year was 834 million dollars on a reported basis, with earnings per diluted share of 2.95 dollars. This compares to the net loss of 652million dollars and a loss per share of about 2.34 dollars in prior years.
On a non-GAAP basis, net income was 841 million dollars with earnings per diluted share of 2.97 dollars. Non-GAAP earnings per share were 2.88 dollars on a 52-week-basis. This compares to non-GAAP net earnings of 271 millions dollars and earnings per diluted shares of 97cs in the previous year.
Based on current strong underlying business trends, the company expects revenue of approximately 6.4 billion dollars, representing mid-teens growth versus the prior year on a 52-week, comparable basis. Expect earnings per diluted share to be between 3.30 and 3.35 dollars.