U.S. luxury conglomerate Tapestry Inc. announced on August 18 that revenues for fiscal 2022 reached record levels, on the back of stellar growth in its digital sales channel.
New York-based Tapestry, which owns luxury accessories and lifestyle brands Coach, Kate Spade, and Stuart Weitzman, achieved a record USD 6.7 billion in revenue for fiscal 2022, representing an increase of over 15 percent, compared to the prior year, and 11 percent higher than full-year 2019 pre-pandemic levels.
During the twelve-month period ending July 2, Tapestry clocked USD 2 billion in digital sales, more than tripling full-year 2019 pre-pandemic levels, and accounting for 30 percent of total revenue. Net income was USD 856 million on a reported basis, with earnings per diluted share of USD 3.17, up from USD 834 million and earnings per diluted share of USD 2.95 in the prior year, for growth of approximately 8 percent.
The record fiscal 2022 was cemented by a best-ever fourth quarter in sales, clocking USD 1.6 billion in revenues representing 7 percent growth on pre-pandemic levels.
During the three months, Tapestry recorded double-digit comparable sales growth compared to the prior year, across North America, Japan, other Asia and Europe, which offset a low-30 percent revenue decline in Greater China due to Covid-related disruption, the company added.
It also achieved another quarter of digital revenue gains with high-single-digit year-over-year growth, while net income dipped slightly to USD 189 million on a reported basis, with earnings per diluted share of USD 0.75. That compares to net income of USD 200 million and earnings per diluted share of USD 0.69 in the prior year period.
“We drove standout results this fiscal year and delivered accelerated revenue and profit growth across our portfolio – a direct reflection of the vibrancy of our brands and our team’s successful execution of the Acceleration Progra,” said Joanne Crevoiserat, Chief Executive Officer of Tapestry, Inc.
“Through an unwavering focus on the consumer, supported by our transformed and diversified business model, we increased AUR, reached USD 2 billion in global digital sales and acquired 7.7 million new customers in North America alone in FY22.”
Looking ahead, Tapestry expects its fiscal 2023 revenue to approximately USD 6.9 billion, representing an increase of 3 percent to 4 percent on a reported basis. It also expects earnings per diluted share of USD 3.80 to USD 3.90, representing double-digit growth compared to the prior year.
“Looking forward, we see significant runway for long-term growth as we harness our powerful combination of iconic brands amplified by a data-rich platform that enhances our ability to build lasting customer relationships,” added Crevoiserat.
“Although the external environment is challenging, we are well-positioned given the durability of our category, the strength of our brands and the proven ability of our teams to respond effectively to change. These competitive advantages and established capabilities will enable us to fuel sustained top and bottom-line gains and drive meaningful shareholder value.”