Tapestry Delivers Upbeat Q4 Results; Announces Dividends and Buybacks

Luxury accessories and lifestyle brands’ company Tapestry (TPR) delivered upbeat fiscal fourth-quarter and full-year results for the period ending July 3, 2021. Earnings and revenue came in above consensus estimates. Tapestry confirmed a dividend offering and share repurchase program. However, shares fell 3.11% to close at $40.17 on August 19.

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Revenue in Q4 was up 126% year-over-year to $1.62 billion, surpassing consensus estimates of $1.56 billion. Net income in the fiscal fourth quarter totaled $200 million. Diluted earnings per share landed at $0.69, surpassing consensus estimates of $0.68 a share.

Net sales for the full year totaled $5.75 billion compared to $4.96 billion in Fiscal 2020. For the full year, diluted EPS landed at $2.95 a share, an improvement from a net loss of $2.34 a share for Fiscal 2020. (See Tapestry stock charts on TipRanks).

According to CEO Joanne Crevoiserat, “Overall, we remain confident in our ability to accelerate growth and profitability across our portfolio long-term, enhancing value for all stakeholders.”

For Fiscal 2022, Tapestry is projecting revenue of about $6.4 billion, representing mid-teen growth from Fiscal 2021. Diluted EPS is expected to range between $3.30 and $3.35.

The board of directors has approved a cash dividend of $0.25 a share, to be paid on September 27, 2021, to shareholders of record on September 7, 2021. Additionally, Tapestry intends to repurchase $500 million worth of stocks in Fiscal 2022. Combining dividends and repurchases, the company should return $750 million to shareholders in Fiscal 2022.

Recently, BTIG analyst Camilo Lyon reiterated a Buy rating on the stock with a $67 price target, implying 66.79% upside potential to current levels.

Consensus among analysts is a Strong Buy based on 4 Buys and 1 Hold. The average Tapestry price target of $56.20 implies 39.91% upside potential to current levels.