Tapestry Inc Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results
Intellectia.AI2024-08-16
Tapestry, Inc. Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results
Tapestry, Inc. (NYSE: TPR), the house of iconic brands including Coach, Kate Spade, and Stuart Weitzman, has released its financial results for the fourth quarter and fiscal year ending on June 29, 2024.
Key Financial Metrics
| Metric | Q4 2023 | Q4 2024 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Revenue | $1.62B | $1.59B | -2% | $1.57B |
| Gross Margin | 72.4% | 74.9% | +2.5% | N/A |
| Operating Income | $274M | $262M | -4.4% | N/A |
| Net Income | $224M | $217M | -3.1% | N/A |
| Earnings Per Share (EPS) | $0.95 | $0.92 | -3.2% | $0.88 |
Tapestry reported a revenue of $1.59 billion for Q4, surpassing the consensus estimate of $1.57 billion but down 2% year-over-year. Gross margin expanded by 2.5 percentage points to 74.9%. However, operating income and net income experienced slight declines compared to the same period last year.
Full Year Financial Metrics
| Metric | FY 2023 | FY 2024 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Revenue | $6.66B | $6.67B | +0.1% | $6.65B |
| Gross Profit | $4.71B | $4.89B | +3.8% | N/A |
| Operating Income | $1.17B | $1.25B | +6.8% | N/A |
| Net Income | $936M | $1.00B | +6.8% | N/A |
| EPS | $3.88 | $4.29 | +10.6% | $4.24 |
Tapestry's full year revenue increased slightly by 0.1% to $6.67 billion, exceeding the consensus estimate. Both gross profit and operating income showed healthy growth, and non-GAAP EPS stood at $4.29, surpassing the company's outlook and analyst expectations.
Segment Performance
| Segment | Revenue FY 2024 | Revenue FY 2023 | YoY Change |
|---|---|---|---|
| Coach | $5.02B | $4.96B | +1.2% |
| Kate Spade | $1.18B | $1.19B | -0.8% |
| Stuart Weitzman | $470M | $510M | -7.8% |
Coach brand had a record year with a revenue surpassing $5 billion. Kate Spade saw a slight decline in revenue by 0.8%, while Stuart Weitzman's revenue fell by 7.8%.
Key Operational Data
| Metric | FY 2023 | FY 2024 | YoY Change |
|---|---|---|---|
| Customer Acquisition in NA | N/A | 6.5M+ | N/A |
| Inventory | $920M | $825M | -10.3% |
Tapestry acquired over 6.5 million new customers in North America, with more than half being Gen Z and Millennials. Inventory levels were managed effectively, reducing by 10.3% year-over-year.
Summary of Comments from Company Officers
Joanne Crevoiserat, CEO of Tapestry, Inc., stated, "Our fourth quarter results exceeded expectations, capping a successful year. This is a testament to our passionate global teams whose creativity and exceptional execution continue to fuel our brands and business. From this position of strength, we have a bold vision for the future and a steadfast commitment to drive growth and shareholder value for years to come."
Dividends and Share Repurchase
The Board of Directors approved the return of $321 million to shareholders via dividend payments, marking an annual dividend rate of $1.40 per share, a 17% increase from the previous year. For fiscal 2025, the same dividend rate will be maintained, and a quarterly cash dividend of $0.35 per share will be paid on September 23, 2024.
Forward Guidance
For Fiscal 2025, Tapestry expects revenue to grow to approximately $6.7 billion. Operating margin is projected to expand by around 50 basis points, and EPS is anticipated to be between $4.45 and $4.50. Free cash flow is expected to be around $1.1 billion, excluding deal-related costs.
Stock Price Movement
Following the earnings release, Tapestry's stock experienced a post-announcement increase of 2.73%.
For more details, visit the Tapestry, Inc. Earnings Presentation .
Share