Tapestry Modifies FY22 Guidance; Sees Earnings Ahead Of Prior Outlook Excl. External Factors

(RTTNews) - Tapestry, Inc. (TPR) said the company is modifying its fiscal 2022 outlook due to: an estimated headwind of $0.25 to $0.30 due to incremental Covid-related pressure in China; and an anticipated negative impact of approximately $0.17 based on the current expectation that the Generalized System of Preferences with retroactive benefit will not be adopted in the current fiscal year. The company noted that, excluding these external factors, its projection would have been $0.25 to $0.30 ahead of prior outlook.

For fiscal 2022, the company now expects earnings per share in the area of $3.45, nearly 20% growth from the prior year on a 52-week, comparable basis. Revenue is projected to be approximately $6.7 billion, a high-teens growth rate from the prior year on a 52-week, comparable basis.

Tapestry now plans to return approximately $1.9 billion to shareholders in fiscal 2022, an increase from the prior outlook of over $1.5 billion. Also, the Board has approved a new $1.5 billion share repurchase program, which it expects to begin utilizing in fiscal 2023.

Tapestry now plans the repurchase of $1.6 billion in common stock in the fiscal year, an increase of $350 million from the prior outlook of $1.25 billion.

The company's third quarter earnings totaled $122.7 million, or $0.46 per share compared with $91.7 million, or $0.32 per share, prior year. Excluding items, adjusted earnings was $0.51 per share, flat with last year. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $0.41, for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter rose 13.4% to $1.44 billion from $1.27 billion last year. Analysts on average had estimated $1.42 billion in revenue.

The Board declared a quarterly cash dividend of $0.25 per common share payable on June 27, 2022 to shareholders of record as of the close of business on June 3, 2022 for an annual dividend rate of $1.00 per share.