Tapestry stock up 15% on Q3 results
Tapestry reported its fiscal Q3 results on Thursday. Here are the notable figures.
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Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.
2022-05-12 17:30

Tapestry Inc. stock closed up 15% on Thursday after the company reported its third quarter fiscal 2022 financial results that topped Street expectations.

Tapestry is a premium fashion holding corporation based in the United States. Its headquarters are in New York City, and it owns three key brands: Coach New York, Kate Spade New York, and Stuart Weitzman.

Important figures in the earnings report

For the third quarter fiscal 2022 the net sales were $1.44 billion relative to $1.27 billion in the same period of previous year whereas the company has recorded a gross profit of $1.01 billion for the third quarter of fiscal 2022 for reported as well as non-GAAP basis while the gross margin was 69.9%.
Tapestry stock up 15% on Q3 results
On a reported basis, SG&A expenses reached $836 million, or 58.1% of sales, opposed to $795 million and 62.5%, respectively, in the prior quarter. SG&A expenses were $829 million and 57.7% of sales on a non-GAAP basis, relative to $729 million and 57.3%, respectively, in the third quarter of 2021.

On a reported basis, operating income was $169 million, with an operating margin of 11.8%, whereas for the third quarter of previous year the operating income was $117 million and a 9.2% operating margin. Operating income was $176 million on a non-GAAP basis, with an operating margin of 12.2 percent. This compares to $183 million in operational income and a 14.4% operating margin the previous year.

Net interest expense for the third quarter of fiscal 2022 was $15 million, down from $17 million the year before. Other expenses were $3 million in the quarter, down from $4 million the year before. On a reported basis, net income for the third quarter of fiscal 2022 was $123 million, with earnings per diluted share of $0.46, compared to $92 million and $0.32 in the third quarter of 2021.

Tapestry’s future expectations

The company has provided its fiscal 2022 guidance as follows:

The business anticipates revenue of roughly $6.7 billion, representing a high-teens growth rate on a 52-week, comparable basis over the preceding year and a new high for the company. Whereas the company is looking forward to approximately $62 million in net interest expense.

If existing tax laws are followed, the company forecasts a tax rate of around 18.0 percent in fiscal year 2022.While the business has estimated a weighted average diluted share count of about 271 million shares for Fiscal 2022, this does not include the expected $1.6 billion in share repurchase activity.

The $8.07 billion company that trades at a PE multiple of 10.36 is still down 20% in the stock market for the year.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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2022-05-12 17:30

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About the Author
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.


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