|
|
Link to Download Tapestry’s Q4 and Full Year 2022 Earnings Presentation, Including Brand Highlights
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220818005188/en/
(Photo: Business Wire)
“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.”
Capital Deployment Actions
In Fiscal 2022, Tapestry returned approximately
Looking ahead to Fiscal 2023, Tapestry expects to return approximately
53rd Week Impact – Fiscal 2021
The results for the fourth quarter and fiscal year ending
Fourth Quarter and Full Year 2022 Financial Highlights
Fourth Quarter 2022:
Fiscal Year 2022:
Fiscal 2022 Acceleration Program Highlights
Throughout the fiscal year, Tapestry made meaningful progress under its Acceleration Program by sharpening the Company’s focus on the consumer, leveraging data to lead with a digital-first mindset and transforming into a leaner and more responsive organization:
Overview of Fourth Quarter 2022 Financial Results
Overview of Full Year 2022 Financial Results
Balance Sheet and Cash Flow Highlights
Non-GAAP Reconciliation
During the fiscal fourth quarter of 2022, Tapestry recorded certain items that decreased the Company’s pre-tax income by
Please refer to Financial Schedules 3 – 6 included herein for a detailed reconciliation of the Company’s reported to non-GAAP results.
Fiscal Year 2023 Outlook
Tapestry expects the following for Fiscal 2023:
This outlook assumes the following:
Given the dynamic nature of these and other external factors, financial results could differ materially from the outlook provided.
Conference Call Details
The Company will host a conference call to review these results at
Upcoming Events
As previously announced, the Company plans to host an Investor Day on
In addition, the Company expects to report Fiscal 2023 first quarter results on
To receive notification of future announcements, please register at www.tapestry.com/investors ("Subscribe to E-Mail Alerts").
About
Our global house of brands unites the magic of Coach, Kate spade new york and
This information to be made available in this press release may contain forward-looking statements based on management's current expectations. Forward-looking statements include, but are not limited to, the statements under “Fiscal Year 2023 Outlook,” statements regarding the Company’s capital deployment plans, including anticipated annual dividend rates, and statements that can be identified by the use of forward-looking terminology such as "may," "will," “can,” "should," "expect," “potential,” "intend," "estimate," "continue," "project," "guidance," "forecast," “outlook,” “commit,” "anticipate," “goal,” “leveraging,” “sharpening,” transforming,” “creating,” accelerating,” “enhancing,” “innovation,” “drive,” “targeting,” “assume,” “plan,” “progress,” “confident,” “future,” “uncertain,” “on track,” “achieve,” “strategic,” “growth,” “we see significant growth opportunities,” “view,” “stretching what’s possible,” or comparable terms. Future results may differ materially from management's current expectations, based upon a number of important factors, including risks and uncertainties such as the impact of the Covid-19 pandemic, including impacts on our supply chain due to temporary closures of our manufacturing partners, price increases, temporary store closures, as well as production, shipping and fulfillment constraints, economic conditions, the ability successfully execute our multi-year growth agenda under our Acceleration Program, the ability to anticipate consumer preferences and retain the value of our brands, including our ability to execute on our e-commerce and digital strategies, the effects of existing and new competition in the marketplace, risks associated with operating in international markets and our global sourcing activities, our ability to achieve intended benefits, cost savings and synergies from acquisitions, the risk of cybersecurity threats and privacy or data security breaches, the impact of pending and potential future legal proceedings, the impact of tax and other legislation and the risks associated with climate change and other corporate responsibility issues, etc. In addition, purchases of shares of the Company’s common stock will be made subject to market conditions and at prevailing market prices. Please refer to the Company’s latest Annual Report on Form 10-K, quarterly report on 10-Q and its other filings with the
Schedule 1: Consolidated Statement of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
For the Quarters and Years Ended |
||||||||||||
(in millions, except per share data) | ||||||||||||
(unaudited) | (unaudited) (audited) | |||||||||||
QUARTER ENDED | YEAR ENDED | |||||||||||
Net sales |
$ |
1,624.9 |
$ |
1,615.4 |
$ |
6,684.5 |
$ |
5,746.3 |
|
|||
Cost of sales |
|
505.7 |
|
449.3 |
|
2,034.1 |
|
1,664.4 |
|
|||
Gross profit |
|
1,119.2 |
|
1,166.1 |
4,650.4 |
|
4,081.9 |
|
||||
Selling, general and administrative expenses |
|
870.7 |
|
906.4 |
|
3,474.6 |
|
3,113.9 |
|
|||
Operating income (loss) |
|
248.5 |
|
259.7 |
|
1,175.8 |
|
968.0 |
|
|||
Loss on extinguishment of debt |
|
- |
|
- |
|
53.7 |
|
- |
|
|||
Interest expense, net |
|
11.9 |
|
16.4 |
|
58.7 |
|
71.4 |
|
|||
Other expense (income) |
|
8.1 |
|
1.1 |
|
16.4 |
|
(0.7 |
) |
|||
Income before provision for income taxes |
|
228.5 |
|
242.2 |
|
1,047.0 |
|
897.3 |
|
|||
Provision for income taxes |
|
39.7 |
|
42.4 |
|
190.7 |
|
63.1 |
|
|||
Net income (loss) |
$ |
188.8 |
$ |
199.8 |
$ |
856.3 |
$ |
834.2 |
|
|||
Net income (loss) per share: |
|
|||||||||||
Basic |
$ |
0.76 |
$ |
0.72 |
$ |
3.24 |
$ |
3.00 |
|
|||
Diluted |
$ |
0.75 |
$ |
0.69 |
$ |
3.17 |
$ |
2.95 |
|
|||
Shares used in computing net income per share: | ||||||||||||
Basic |
|
247.6 |
|
279.2 |
|
264.3 |
|
277.9 |
|
|||
Diluted |
|
252.3 |
|
287.6 |
|
270.1 |
|
283.0 |
|
Schedule 2: Detail to
DETAIL TO |
|||||||||||||||||||
For the Quarter and Year Ended |
|||||||||||||||||||
(in millions) | |||||||||||||||||||
(unaudited) | |||||||||||||||||||
QUARTER ENDED | |||||||||||||||||||
% Change vs. FY21 | Constant Currency % Change FY21 |
% change vs. FY21 Adjusted |
% Change vs. FY19 | ||||||||||||||||
Coach |
$ |
1,209.0 |
$ |
1,188.9 |
2 |
% |
4 |
% |
8 |
% |
10 |
% |
|||||||
|
344.1 |
|
341.6 |
1 |
% |
2 |
% |
8 |
% |
4 |
% |
||||||||
|
71.8 |
|
84.9 |
(15 |
)% |
(15 |
)% |
(12 |
)% |
(16 |
)% |
||||||||
Total Tapestry |
$ |
1,624.9 |
$ |
1,615.4 |
1 |
% |
3 |
% |
7 |
% |
7 |
% |
|||||||
(1) The 'FY21 Adjusted |
|||||||||||||||||||
YEAR ENDED | |||||||||||||||||||
% Change vs. FY21 | Constant Currency % Change FY21 |
% change vs. FY21 Adjusted |
% Change vs. FY19 | ||||||||||||||||
Coach |
$ |
4,921.3 |
$ |
4,253.1 |
16 |
% |
16 |
% |
18 |
% |
15 |
% |
|||||||
|
1,445.5 |
|
1,210.0 |
20 |
% |
20 |
% |
22 |
% |
6 |
% |
||||||||
|
317.7 |
|
283.2 |
12 |
% |
11 |
% |
13 |
% |
(18 |
)% |
||||||||
Total Tapestry |
$ |
6,684.5 |
$ |
5,746.3 |
16 |
% |
17 |
% |
18 |
% |
11 |
% |
|||||||
(2) The 'FY21 Adjusted |
Schedule 3: Items Affecting Comparability – 4Q22
GAAP TO NON-GAAP RECONCILIATION | ||||||||||||
(in millions, except per share data) | ||||||||||||
(unaudited) | ||||||||||||
For the Quarter Ended |
||||||||||||
Items Affecting Comparability | ||||||||||||
GAAP Basis (As Reported) |
Acceleration Program | Non-GAAP Basis (Excluding Items) |
||||||||||
Cost of sales | ||||||||||||
Coach |
|
864.6 |
|
|
- |
|
|
864.6 |
|
|||
|
215.4 |
|
|
- |
|
|
215.4 |
|
||||
|
39.2 |
|
|
- |
|
|
39.2 |
|
||||
Gross profit(1) |
$ |
1,119.2 |
|
$ |
- |
|
$ |
1,119.2 |
|
|||
SG&A expenses | ||||||||||||
Coach |
|
515.2 |
|
|
2.7 |
|
|
512.5 |
|
|||
|
189.2 |
|
|
1.7 |
|
|
187.5 |
|
||||
|
42.9 |
|
|
0.4 |
|
|
42.5 |
|
||||
Corporate |
|
123.4 |
|
|
6.3 |
|
|
117.1 |
|
|||
SG&A expenses |
$ |
870.7 |
|
$ |
11.1 |
|
$ |
859.6 |
|
|||
Operating income (loss) | ||||||||||||
Coach |
|
349.4 |
|
|
(2.7 |
) |
|
352.1 |
|
|||
|
26.2 |
|
|
(1.7 |
) |
|
27.9 |
|
||||
|
(3.7 |
) |
|
(0.4 |
) |
|
(3.3 |
) |
||||
Corporate |
|
(123.4 |
) |
|
(6.3 |
) |
|
(117.1 |
) |
|||
Operating income (loss) |
$ |
248.5 |
|
$ |
(11.1 |
) |
$ |
259.6 |
|
|||
Provision for income taxes |
|
39.7 |
|
|
(2.7 |
) |
|
42.4 |
|
|||
Net income (loss) |
$ |
188.8 |
|
$ |
(8.4 |
) |
$ |
197.2 |
|
|||
Net income (loss) per diluted common share |
$ |
0.75 |
|
$ |
(0.03 |
) |
$ |
0.78 |
|
|||
(1) Adjustments within Gross profit are recorded within Cost of sales. |
Schedule 4: Items Affecting Comparability – 4Q21
GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||
(in millions, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
For the Quarter Ended |
|||||||||||||||
Items Affecting Comparability | |||||||||||||||
GAAP Basis (As Reported) |
Impairment | Acceleration Program | Non-GAAP Basis (Excluding Items) |
||||||||||||
Cost of sales | |||||||||||||||
Coach |
|
898.0 |
|
|
8.1 |
|
- |
|
|
889.9 |
|
||||
|
221.0 |
|
|
- |
|
- |
|
|
221.0 |
|
|||||
|
47.1 |
|
|
- |
|
- |
|
|
47.1 |
|
|||||
Gross profit(1) |
$ |
1,166.1 |
|
$ |
8.1 |
$ |
- |
|
$ |
1,158.0 |
|
||||
SG&A expenses | |||||||||||||||
Coach |
|
519.3 |
|
|
- |
|
0.7 |
|
|
518.6 |
|
||||
|
185.8 |
|
|
- |
|
0.1 |
|
|
185.7 |
|
|||||
|
50.1 |
|
|
- |
|
(1.2 |
) |
|
51.3 |
|
|||||
Corporate |
|
151.2 |
|
|
- |
|
21.3 |
|
|
129.9 |
|
||||
SG&A expenses |
$ |
906.4 |
|
$ |
- |
$ |
20.9 |
|
$ |
885.5 |
|
||||
Operating income (loss) | |||||||||||||||
Coach |
|
378.7 |
|
|
8.1 |
|
(0.7 |
) |
|
371.3 |
|
||||
|
35.2 |
|
|
- |
|
(0.1 |
) |
|
35.3 |
|
|||||
|
(3.0 |
) |
|
- |
|
1.2 |
|
|
(4.2 |
) |
|||||
Corporate |
|
(151.2 |
) |
|
- |
|
(21.3 |
) |
|
(129.9 |
) |
||||
Operating income (loss) |
$ |
259.7 |
|
$ |
8.1 |
$ |
(20.9 |
) |
$ |
272.5 |
|
||||
Provision for income taxes |
|
42.4 |
|
|
2.0 |
|
(2.2 |
) |
|
42.6 |
|
||||
Net income (loss) |
$ |
199.8 |
|
$ |
6.1 |
$ |
(18.7 |
) |
$ |
212.4 |
|
||||
Net income (loss) per diluted common share |
$ |
0.69 |
|
$ |
0.02 |
$ |
(0.07 |
) |
$ |
0.74 |
|
||||
(1) Adjustments within Gross profit are recorded within Cost of sales. |
The amounts reflected above include the impact of the additional week on the fourth quarter of Fiscal 2021. The following table quantifies the impact of the additional week on
DETAILS TO IMPACT OF 14TH WEEK IN FISCAL 2021 | ||||||||||||||
(in millions) | ||||||||||||||
(unaudited) | ||||||||||||||
For the Quarter Ended |
||||||||||||||
Non-GAAP | Impact of 14th Week |
Adjusted | ||||||||||||
Coach |
$ |
1,188.9 |
|
$ |
67.7 |
|
$ |
1,121.2 |
|
|||||
|
341.6 |
|
|
21.7 |
|
|
319.9 |
|
||||||
|
84.9 |
|
|
3.3 |
|
|
81.6 |
|
||||||
Total |
$ |
1,615.4 |
|
$ |
92.7 |
|
$ |
1,522.7 |
|
|||||
Cost of sales | ||||||||||||||
Coach |
$ |
889.9 |
|
$ |
50.3 |
|
$ |
839.6 |
|
|||||
|
221.0 |
|
|
13.3 |
|
|
207.7 |
|
||||||
|
47.1 |
|
|
2.0 |
|
|
45.1 |
|
||||||
Total Gross Profit |
$ |
1,158.0 |
|
$ |
65.6 |
|
$ |
1,092.4 |
|
|||||
SG&A expenses | ||||||||||||||
Coach |
$ |
518.6 |
|
$ |
21.7 |
|
$ |
496.9 |
|
|||||
|
185.7 |
|
|
8.6 |
|
|
177.1 |
|
||||||
|
51.3 |
|
|
1.8 |
|
|
49.5 |
|
||||||
Corporate |
|
129.9 |
|
|
3.5 |
|
|
126.4 |
|
|||||
Total SG&A expenses |
$ |
885.5 |
|
$ |
35.6 |
|
$ |
849.9 |
|
|||||
Operating Income (Loss) | ||||||||||||||
Coach |
$ |
371.3 |
|
$ |
28.6 |
|
$ |
342.7 |
|
|||||
|
35.3 |
|
|
4.7 |
|
|
30.6 |
|
||||||
|
(4.2 |
) |
|
0.2 |
|
|
(4.4 |
) |
||||||
Corporate |
|
(129.9 |
) |
|
(3.5 |
) |
|
(126.4 |
) |
|||||
Total Operating Income (Loss) |
$ |
272.5 |
|
$ |
30.0 |
|
$ |
242.5 |
|
Schedule 5: Items Affecting Comparability – FY22
GAAP TO NON-GAAP RECONCILIATION | |||||||||||||||
(in millions, except per share data) | |||||||||||||||
(unaudited) | |||||||||||||||
For the Fiscal Year Ended |
|||||||||||||||
Items Affecting Comparability | |||||||||||||||
GAAP Basis (As Reported) |
Acceleration Program |
Debt Extinguishment |
Non-GAAP Basis (Excluding Items) |
||||||||||||
Cost of sales | |||||||||||||||
Coach |
|
3,553.8 |
|
|
- |
|
|
- |
|
|
3,553.8 |
|
|||
|
912.0 |
|
|
- |
|
|
- |
|
|
912.0 |
|
||||
|
184.6 |
|
|
- |
|
|
- |
|
|
184.6 |
|
||||
Gross profit(1) |
$ |
4,650.4 |
|
$ |
- |
|
$ |
- |
|
$ |
4,650.4 |
|
|||
SG&A expenses | |||||||||||||||
Coach |
|
2,079.9 |
|
|
6.7 |
|
|
- |
|
|
2,073.2 |
|
|||
|
754.6 |
|
|
5.9 |
|
|
- |
|
|
748.7 |
|
||||
|
182.8 |
|
|
3.6 |
|
|
- |
|
|
179.2 |
|
||||
Corporate |
|
457.3 |
|
|
26.6 |
|
|
- |
|
|
430.7 |
|
|||
SG&A expenses |
$ |
3,474.6 |
|
$ |
42.8 |
|
$ |
- |
|
$ |
3,431.8 |
|
|||
Operating income (loss) | |||||||||||||||
Coach |
|
1,473.9 |
|
|
(6.7 |
) |
|
- |
|
|
1,480.6 |
|
|||
|
157.4 |
|
|
(5.9 |
) |
|
- |
|
|
163.3 |
|
||||
|
1.8 |
|
|
(3.6 |
) |
|
- |
|
|
5.4 |
|
||||
Corporate |
|
(457.3 |
) |
|
(26.6 |
) |
|
- |
|
|
(430.7 |
) |
|||
Operating income (loss) |
$ |
1,175.8 |
|
$ |
(42.8 |
) |
$ |
- |
|
$ |
1,218.6 |
|
|||
Loss on extinguishment of debt |
|
53.7 |
|
|
- |
|
|
53.7 |
|
|
- |
|
|||
Provision for income taxes |
|
190.7 |
|
|
(3.4 |
) |
|
(12.9 |
) |
|
207.0 |
|
|||
Net income (loss) |
$ |
856.3 |
|
$ |
(39.4 |
) |
$ |
(40.8 |
) |
$ |
936.5 |
|
|||
Net income (loss) per diluted common share |
$ |
3.17 |
|
$ |
(0.15 |
) |
$ |
(0.15 |
) |
$ |
3.47 |
|
|||
(1) Adjustments within Gross profit are recorded within Cost of sales. |
Schedule 6: Items Affecting Comparability – FY21
GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
For the Fiscal Year Ended |
||||||||||||||||||||
Items Affecting Comparability | ||||||||||||||||||||
GAAP Basis (As Reported) |
CARES Act Tax Impact | Impairment | Acceleration Program | Non-GAAP Basis (Excluding Items) |
||||||||||||||||
Cost of sales | ||||||||||||||||||||
Coach |
|
3,149.0 |
|
|
- |
|
|
8.1 |
|
|
- |
|
|
3,140.9 |
|
|||||
|
768.4 |
|
|
- |
|
|
- |
|
|
- |
|
|
768.4 |
|
||||||
|
164.5 |
|
|
- |
|
|
- |
|
|
- |
|
|
164.5 |
|
||||||
Gross profit(1) |
$ |
4,081.9 |
|
$ |
- |
|
$ |
8.1 |
|
$ |
- |
|
$ |
4,073.8 |
|
|||||
SG&A expenses | ||||||||||||||||||||
Coach |
|
1,836.9 |
|
|
- |
|
|
20.4 |
|
|
21.9 |
|
|
1,794.6 |
|
|||||
|
659.9 |
|
|
- |
|
|
19.3 |
|
|
4.4 |
|
|
636.2 |
|
||||||
|
173.1 |
|
|
- |
|
|
6.1 |
|
|
(2.5 |
) |
|
169.5 |
|
||||||
Corporate |
|
444.0 |
|
|
- |
|
|
- |
|
|
65.8 |
|
|
378.2 |
|
|||||
SG&A expenses |
$ |
3,113.9 |
|
$ |
- |
|
$ |
45.8 |
|
$ |
89.6 |
|
$ |
2,978.5 |
|
|||||
Operating income (loss) | ||||||||||||||||||||
Coach |
|
1,312.1 |
|
|
- |
|
|
(12.3 |
) |
|
(21.9 |
) |
|
1,346.3 |
|
|||||
|
108.5 |
|
|
- |
|
|
(19.3 |
) |
|
(4.4 |
) |
|
132.2 |
|
||||||
|
(8.6 |
) |
|
- |
|
|
(6.1 |
) |
|
2.5 |
|
|
(5.0 |
) |
||||||
Corporate |
|
(444.0 |
) |
|
- |
|
|
- |
|
|
(65.8 |
) |
|
(378.2 |
) |
|||||
Operating income (loss) |
$ |
968.0 |
|
$ |
- |
|
$ |
(37.7 |
) |
$ |
(89.6 |
) |
$ |
1,095.3 |
|
|||||
Provision for income taxes |
|
63.1 |
|
|
(95.0 |
) |
|
(7.8 |
) |
|
(17.6 |
) |
|
183.5 |
|
|||||
Net income (loss) |
$ |
834.2 |
|
$ |
95.0 |
|
$ |
(29.9 |
) |
$ |
(72.0 |
) |
$ |
841.1 |
|
|||||
Net income (loss) per diluted common share |
$ |
2.95 |
|
$ |
0.31 |
|
$ |
(0.10 |
) |
$ |
(0.23 |
) |
$ |
2.97 |
|
|||||
(1) Adjustments within Gross profit are recorded within Cost of sales. |
The amounts reflected above include the impact of the additional week within the full year of Fiscal 2021. The following table quantifies the impact of the additional week on
DETAILS TO IMPACT OF 53RD WEEK IN FISCAL 2021 | ||||||||||||||
(in millions) | ||||||||||||||
(unaudited) | ||||||||||||||
For the Fiscal Year Ended |
||||||||||||||
Non-GAAP | Impact of 53rd Week | Adjusted | ||||||||||||
Coach |
$ |
4,253.1 |
|
$ |
67.7 |
|
$ |
4,185.4 |
|
|||||
|
1,210.0 |
|
|
21.7 |
|
|
1,188.3 |
|
||||||
|
283.2 |
|
|
3.3 |
|
|
279.9 |
|
||||||
Total |
$ |
5,746.3 |
|
$ |
92.7 |
|
$ |
5,653.6 |
|
|||||
Cost of sales | ||||||||||||||
Coach |
$ |
3,140.9 |
|
$ |
50.3 |
|
$ |
3,090.6 |
|
|||||
|
768.4 |
|
|
13.3 |
|
|
755.1 |
|
||||||
|
164.5 |
|
|
2.0 |
|
|
162.5 |
|
||||||
Total Gross Profit |
$ |
4,073.8 |
|
$ |
65.5 |
|
$ |
4,008.3 |
|
|||||
SG&A expenses | ||||||||||||||
Coach |
$ |
1,794.6 |
|
$ |
21.7 |
|
$ |
1,772.9 |
|
|||||
|
636.2 |
|
|
8.5 |
|
|
627.7 |
|
||||||
|
169.5 |
|
|
1.8 |
|
|
167.7 |
|
||||||
Corporate |
|
378.2 |
|
|
3.5 |
|
|
374.7 |
|
|||||
Total SG&A expenses |
$ |
2,978.5 |
|
$ |
35.6 |
|
$ |
2,942.9 |
|
|||||
Operating Income (Loss) | ||||||||||||||
Coach |
$ |
1,346.3 |
|
$ |
28.6 |
|
$ |
1,317.7 |
|
|||||
|
132.2 |
|
|
4.7 |
|
|
127.5 |
|
||||||
|
(5.0 |
) |
|
0.2 |
|
|
(5.2 |
) |
||||||
Corporate |
|
(378.2 |
) |
|
(3.5 |
) |
|
(374.7 |
) |
|||||
Total Operating Income (Loss) |
$ |
1,095.3 |
|
$ |
30.0 |
|
$ |
1,065.3 |
|
The Company reports information in accordance with
The Company operates on a global basis and reports financial results in
Net sales changes for the Company and each segment are based on absolute sales dollar changes and are not presented in accordance with the Company’s comparable sales definition utilized historically due to the uncertain business environment resulting from the impact of the Covid-19 pandemic.
Management utilizes these non-GAAP and constant currency measures to conduct and evaluate its business during its regular review of operating results for the periods affected and to make decisions about Company resources and performance. The Company believes presenting these non-GAAP measures, which exclude items that are not comparable from period to period, is useful to investors and others in evaluating the Company’s ongoing operating and financial results in a manner that is consistent with management’s evaluation of business performance and understanding how such results compare with the Company’s historical performance. Additionally, the Company believes presenting these metrics on a constant currency basis will help investors and analysts to understand the effect of significant year-over-year foreign currency exchange rate fluctuations on these performance measures and provide a framework to assess how business is performing and expected to perform excluding these effects.
In addition to these non-GAAP measures, the Company has provided comparisons to certain fiscal year 2019 results and trends, referred to as pre-pandemic levels, which the Company believes is useful to investors and others in evaluating the Company’s results, due to the significant impact of the Covid-19 pandemic on the Company’s operations and financial results, starting in the second half of fiscal year 2020.
Schedule 7: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
At |
|||||
(in millions) | |||||
(unaudited) | (audited) | ||||
ASSETS | |||||
Cash, cash equivalents and short-term investments |
$ |
953.2 |
$ |
2,015.8 |
|
Receivables |
|
252.3 |
|
200.2 |
|
Inventories |
|
994.2 |
|
734.8 |
|
Other current assets |
|
374.1 |
|
424.5 |
|
Total current assets |
|
2,573.8 |
|
3,375.3 |
|
Property and equipment, net |
|
544.4 |
|
678.1 |
|
Lease right-of-use assets |
|
1,281.6 |
|
1,496.6 |
|
Other noncurrent assets |
|
2,865.5 |
|
2,832.4 |
|
Total assets |
$ |
7,265.3 |
$ |
8,382.4 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Accounts payable |
$ |
520.7 |
$ |
445.2 |
|
Accrued liabilities |
|
628.2 |
|
661.2 |
|
Short-term lease liabilities |
|
288.7 |
|
319.4 |
|
Current debt |
|
31.2 |
|
- |
|
Total current liabilities |
|
1,468.8 |
|
1,425.8 |
|
Long-term debt |
|
1,659.2 |
|
1,590.7 |
|
Long-term lease liabilities |
|
1,282.3 |
|
1,525.9 |
|
Other liabilities |
|
569.5 |
|
580.7 |
|
Stockholders' equity |
|
2,285.5 |
|
3,259.3 |
|
Total liabilities and stockholders' equity |
$ |
7,265.3 |
$ |
8,382.4 |
Schedule 8: Condensed Consolidated Statement of Cash Flows
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||
For the Year Ended |
|||||||
(in millions) | |||||||
(unaudited) | (audited) | ||||||
Cash Flows from Operating Activities | |||||||
Net income (loss) |
$ |
856.3 |
|
$ |
834.2 |
|
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||
Depreciation and amortization |
|
195.3 |
|
|
218.7 |
|
|
Covid-19 related impairment charges |
|
- |
|
|
45.8 |
|
|
Other non-cash items |
|
168.4 |
|
|
(5.3 |
) |
|
Changes in operating assets and liabilities |
|
(366.8 |
) |
|
230.3 |
|
|
Net cash provided by operating activities |
|
853.2 |
|
|
1,323.7 |
|
|
Cash Flows from Investing Activities | |||||||
Purchases of property and equipment |
|
(93.9 |
) |
|
(116.0 |
) |
|
Purchase of investments |
|
(540.4 |
) |
|
(0.7 |
) |
|
Other items |
|
380.7 |
|
|
25.7 |
|
|
Net cash provided by (used in) investing activities |
|
(253.6 |
) |
|
(91.0 |
) |
|
Cash Flows from Financing Activities | |||||||
Payment of dividends |
|
(264.4 |
) |
|
- |
|
|
Repurchase of common stock |
|
(1,600.0 |
) |
|
- |
|
|
Proceeds from debt, net of discount |
|
998.5 |
|
|
- |
|
|
Payment of debt extinguishment costs |
|
(50.7 |
) |
|
- |
|
|
Repayment of debt |
|
(900.0 |
) |
|
(711.5 |
) |
|
Other items |
|
38.5 |
|
|
45.5 |
|
|
Net cash provided by (used in) financing activities |
|
(1,778.1 |
) |
|
(666.0 |
) |
|
Effect of exchange rate on cash and cash equivalents |
|
(39.4 |
) |
|
14.7 |
|
|
Net (decrease) increase in cash and cash equivalents |
|
(1,217.9 |
) |
|
581.4 |
|
|
Cash and cash equivalents at beginning of period |
$ |
2,007.7 |
|
$ |
1,426.3 |
|
|
Cash and cash equivalents at end of period |
$ |
789.8 |
|
$ |
2,007.7 |
|
Schedule 9: Store Count by Brand – 4Q22
STORE COUNT | |||||
At |
|||||
(unaudited) | |||||
As of | As of | ||||
Directly-Operated Store Count: | Openings | (Closures) | |||
Coach | |||||
346 |
- |
(3) |
343 |
||
International |
606 |
6 |
(10) |
602 |
|
207 |
- |
- |
207 |
||
International |
192 |
4 |
(5) |
191 |
|
40 |
- |
(1) |
39 |
||
International |
57 |
4 |
- |
61 |
Schedule 10: Store Count by Brand – FY22
STORE COUNT | ||||
At |
||||
(unaudited) | ||||
As of | As of | |||
Directly-Operated Store Count: | Openings | (Closures) | ||
Coach | ||||
354 |
3 |
(14) |
343 |
|
International |
585 |
45 |
(28) |
602 |
210 |
- |
(3) |
207 |
|
International |
197 |
12 |
(18) |
191 |
48 |
- |
(9) |
39 |
|
International |
56 |
5 |
- |
61 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220818005188/en/
Media:
Chief Communications Officer
212/629-2618
aresnick@tapestry.com
Analysts and Investors:
Global Head of Investor Relations
212/946-7252
ccolone@tapestry.com
212/946-8183
Director of Investor Relations
kmueller@tapestry.com
Source: