Tapestry, Inc. reported net sales of $1.44 billion in the third quarter, up 13% over the same quarter the previous year.
The company is revising its fiscal 2022 outlook due to a projected headwind of 25 cents to 30 cents from incremental Covid-related pressure in China, as well as an expected negative impact of around 17 cents based on the current expectation that the Generalized System of Preferences (‘GSP’) with retroactive benefit will not be implemented in the current fiscal year.
Joanne Crevoiserat, Tapestry, Inc.’s chief executive officer, stated of the third quarter’s trading, “Our
Highlights of Tapestry’s Q3 results
On both a reported and non-GAAP basis, the company’s gross profit was $1.01 billion, with a gross margin of 69.9%.
On a reported basis, operating income was 169 million dollars, with an operating margin of 11.8 percent, up from 117 million dollars and a 9.2 percent operating margin the previous year.
On a reported basis, net income for the quarter was 123 million dollars, with earnings per diluted share of 46 cents, compared to 92 million dollars and 32 cents in the prior-year period.
Net income was 136 million dollars on a non-GAAP basis, with earnings per diluted share of 51 cents. In the prior-year period, non-GAAP net income was 145 million dollars, with earnings per diluted share of 51 cents.
Tapestry lowers FY22 profit outlook
Without the external factors, the company’s forecast would have been 25 cents to 30 cents higher than its previous forecast, owing to strong underlying growth in the rest of the world, particularly North America, and a 4 cent benefit from extra share repurchase activities.
On a 52-week, comparable basis, the business now forecasts sales of around 6.7 billion dollars, representing a high-teens growth rate over the prior year. Earnings per share of diluted stock