Tapestry shook off the challenging microeconomic headwinds and posted a record $1.6 billion in revenue — up 7 percent over 2019 — on slightly lower net income in the fourth quarter. For the quarter, operating income was $249 million, down from $260 million in the prior-year period.
For the period ended July 2, the parent of Coach, Kate Spade and Stuart Weitzman reported double-digit sales increases across North America, Japan, other Asian countries and Europe that offset a low-30 percent decrease in Greater China due to COVID-19 related closures. Digital revenue was particularly robust in the period, posting high single-digit growth year-over-year.
As a result, earnings per share in the quarter increased 8 percent and non-GAAP EPS jumped 20 percent from 2021 and 29 percent ahead of the pre-pandemic period in 2019.
For the year, the company hit $6.7 billion in revenues, another record, an increase of 16 percent over the prior year’s $5.75 billion and 11 percent above 2019. Digital sales in the year hit $2 billion, more than triple fiscal year 2019, and they now represent 30 percent of the company’s total revenue. Net income was $856 million, up from $834 million a year ago, and EPS was 8 percent compared to 2021 while non-GAAP EPS increased 20 percent over last year and more than 35 percent over 2019.
Joanne Crevoiserat, chief executive officer, said, “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 Program. Through an unwavering focus on the consumer, supported by our transformed and diversified business model, we increased average unit retail, reached $2 billion in global digital sales and acquired 7.7 million new customers in North America alone in fiscal year ‘22.
“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. 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.”
Looking ahead to fiscal 2023, Tapestry is projecting sales of $6.9 billion, an increase of 3 percent to 4 percent and earnings per share of $3.80 to $3.90, which would represent double-digit growth compared to the prior year.