Tapestry Raises FY22 Guidance; Board Approves Incremental $1 Bln Share Buyback Program

(RTTNews) - While reporting quarterly results on Thursday, Tapestry, Inc. (TPR) increased its revenue and EPS outlook for the fiscal year, reflecting first quarter performance and strong underlying business trends. Also, the company's Board approved an incremental $1 billion share repurchase program. As a result, the company now expects to return approximately $1.25 billion to shareholders in fiscal 2022, a meaningful increase from the previous outlook.

For fiscal 2022, on a non-GAAP basis, the company now expects earnings per share of $3.45 to $3.50, ahead of the prior guidance for $3.30 to $3.35. Revenue is now projected to approach $6.6 billion, an increase from the prior outlook for $6.4 billion. Analysts polled by Thomson Reuters expect the company to report profit per share of $3.36 on revenue of $ 6.42 billion. Analysts' estimates typically exclude special items.

First quarter non-GAAP net income per share was $0.82 compared to $0.58, last year. On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $0.70, for the quarter.

Net income was $227 million on a reported basis, with earnings per share of $0.80, compared to $232 million and earnings per share of $0.83.

Net sales were $1.48 billion compared to $1.17 billion, prior year, a 26% increase. Analysts on average had estimated $1.44 billion in revenue.

The company plans to buy-back $750 million worth of its common stock in the balance of the fiscal year, utilizing the remaining $350 million under its existing authorization and $400 million of newly announced $1 billion program.

The Board declared a quarterly cash dividend of $0.25 per share payable on December 27, 2021 to shareholders of record as of the close of business on December 3, 2021. The company expects an annual dividend rate of $1.00 per share, or $250 million returned to shareholders in the fiscal year.

Also, Tapestry expects to repay its July 2022 bonds, totaling $400 million, by the end of fiscal 2022.

Shares of Tapestry were up 3% in pre-market trade on Thursday.