Tapestry changes the guidelines for exercise 22; Sees profits ahead of previous outlook Excl. External factors

(RTTNews) – Tapestry, Inc. (TPR) said the company is changing its outlook for fiscal 2022 due to: an estimated headwind of $0.25 to $0.30 due to additional pressure related to Covid in China; and an expected negative impact of approximately $0.17 based on the current expectation that the Generalized System of Preferences with retroactive benefit will not be adopted in the current fiscal year. The company noted that excluding these external factors, its projection would have been $0.25 to $0.30 ahead of the previous outlook.

For fiscal 2022, the company now expects earnings per share of about $3.45, up nearly 20% year over year on a 52-week comparable basis. Revenue is expected to be approximately $6.7 billion, a higher growth rate than the prior year on a comparable 52-week basis.

Tapestry now expects to return approximately $1.9 billion to shareholders in fiscal 2022, an increase from previous guidance of more than $1.5 billion. In addition, the board approved a new $1.5 billion share buyback program, which it expects to begin utilizing in fiscal year 2023.

Tapestry now expects to repurchase $1.6 billion of common stock during the year, an increase of $350 million from the previous outlook of $1.25 billion.

The company’s third-quarter earnings totaled $122.7 million, or $0.46 per share, compared with $91.7 million, or $0.32 per share, a year earlier. Excluding items, adjusted earnings were $0.51 per share, flat from a year ago. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.41 for the quarter. Analyst estimates generally exclude special items.

Revenue for the quarter rose 13.4% to $1.44 billion from $1.27 billion last year. Analysts had estimated an average of $1.42 billion in revenue.

The board declared a quarterly cash dividend of $0.25 per common share payable June 27, 2022 to shareholders of record at the close of business June 3, 2022 for an annual dividend rate of $1.00 per share.

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Shirlene J. Manley