Tapestry reported net sales of 2.14 billion dollars for the second quarter compared to 1.69 billion dollars in the prior year, representing a 27 percent increase. The company said in a release that sales rose 18 percent compared to pre-pandemic levels.
Commenting on the second quarter trading, Joanne Crevoiserat, chief executive officer of Tapestry, Inc., said: “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. Based on these results, we are raising our revenue, operating income, and EPS guidance for the fiscal year.”
Tapestry posts increase in Q2 net income
The company added that net income for the quarter was 318 million dollars on a reported basis, with earnings per diluted share were 1.15 dollars compared to 311 million dollars and earnings per diluted share of 1.11 dollars in the prior year period.
On a non-GAAP basis, net income was 368 million dollars with earnings per diluted share of 1.33 dollars compared to 323 million dollars with earnings per diluted share of 1.15 dollars in the prior year period.
The company’s gross profit totaled 1.46 billion dollars on both reported and non-GAAP basis, while gross margin was 68.1 percent.
Operating income for the quarter was 463 million dollars on a reported basis, while operating margin was 21.6 percent, which compares to operating income of 389 million dollars and operating margin of 23.1 percent in the prior year.
On a non-GAAP basis, operating income was 476 million dollars, while operating margin was 22.2 percent compared to 411 million dollars and an operating margin of 24.4 percent in the prior year.
Tapestry raises outlook after strong Q2 results
The company is increasing its outlook for fiscal 2022 and now expects revenue of approximately 6.75 billion dollars, an increase from the prior outlook of 6.6 billion dollars. This represents growth of nearly 20 percent versus the prior year.
The company expects earnings per diluted share of 3.60 dollars to 3.65 dollars, ahead of the prior guidance for 3.45 dollars to 3.50 dollars.