The North American fashion multinational Tapestry, a company specialized in the luxury sector with an American flavor from its position as the parent company of the brands Coach, Kate Spade and Stuart Weitzman, offered last August 18 an update on its accounts, presenting its annual results relating to its last full fiscal year of 2021. The year ended on July 2, 2022, which Tapestry managed to complete with a considerable increase in both its turnover and its benefits, despite a last quarter of the year during which, as a reflection of this current inflationary period, and in line with the trends that the majority of companies linked to the fashion industry are offering on their balance sheets, the multinational closed with a slight increase in its turnover volumes, in which did not come accompanied, but rather on the contrary, by an increase in its benefits.
Entering to put in contrast this sum of estimates, Tapestry reported on a last full year of 2021 during which it managed to generate total sales worth 6,684.5 million dollars, exactly 6,684.5 million euros at the current exchange rate , at a time when the dollar reached parity with the euro. A figure a +16.33 percent higher than the 5,746.3 million collected during its full year of 2020, finalized on July 3, 2021, as well as a +34.73 percent more than with respect to the 4,961, 4 million dollars from his 2019 financial year, which ended on June 27, 2020, and therefore seeing that his case has been affected by the effects of the coronavirus pandemic.
Following the trend observed on its turnover volumes, Tapestry closed its last fiscal year with a net profit of 856.3 million dollars, equivalent to 856.3 million euros at current exchange rates. A value in its case a +2.65 percent to the 834.2 million dollars of benefits it collected during its previous year; and the figure is very distant from the losses of up to -652.1 million dollars incurred at the end of the 2019 financial year.
“We obtained outstanding results this fiscal year and achieved accelerated growth in revenues and benefits over our entire portfolio, a direct reflection of the dynamism of our brands and the successful execution of our Acceleration Program by our teams,” he entered to highlight Joanne Crevoiserat, current executive director of Tapestry, according to statements released by the American multinational fashion company itself. Who, following this same economic line, does not hesitate to enter to remark how “through our unwavering approach to the consumer, supported by our updated and diversified business model, we increased our AUR, reached the 2 billion dollars in sales digital globals and we acquired 7.7 million new clients in North America alone during the 21/22 financial year”.
Perspectives for the new exercise 2022/2023
Having managed to successfully close this last fiscal year, Tapestry is now opening a new year for 2022/2023, for which the North American multinational has already offered a first roadmap, in financial terms. A sum of estimates for those who warn that they could differ from the final results obtained by the company, given the dynamic nature and the sum of other external factors that are influencing the global macroeconomic scene.
In this regard, assuming that the dollar does not continue to appreciate significantly against foreign currencies, that demand in China can gradually recover and that there are no major blockades or significant pressures on the value chains due to Covid -19, as well as neither a major deterioration in consumer confidence nor an increase in inflationary pressures; desde Tapestry are now confident of ending the year with total revenues of around 6.9 billion dollars. A figure that would be presented as an increase of between +3 and +4 percent year-on-year, in an increase that would arrive accompanied by a double-digit growth in the profit per diluted share, up to 3.80 and 3.90 dollars per title, compared to the diluted profit per share of 3.17 dollars for this year 2021, or the 2.95 dollars that marked the same value at the end of the previous year 2020.
“Looking to the future, we see a significant path for long-term growth as we leverage our strong combination of iconic brands, amplified by a data-rich platform that allows us to improve our ability to build lasting relationships with clients”, began to assess Crevoiserat. “If the environment is challenging, we are well positioned given the resistance” of the category in which their articles move, “the strength of our brands and the capacity demonstrated by our teams to respond effectively to this change”. “These competitive advantages and established capabilities”, says Tapestry’s top executive, “will allow us to boost our profits in a sustainable way, as well as significantly increase the value for shareholders”.