Net sales totalled US$1.48 billion for the first quarter compared to US$1.17 billion in the prior year. Gross profit for the period was US$1.07 billion on a reported and non-GAAP basis, while gross margin was 72.2%. This compared to prior year gross profit of US$830 million and gross margin of 70.8% on a reported and non-GAAP basis.
The group saw revenue growth of nearly 50% in Digital, more 275% compared to pre-pandemic levels, while further improving sequential revenue trends in-stores on both a one and two-year basis.
Sales jumped by 40% year-on-year in North America, representing a high-teens increase against pre-pandemic levels, while China saw an increase of over 25%, approximately 65% higher than pre-pandemic sales levels.
Given the strong first quarter results, Tapestry’s Board of Directors has approved an incremental US$1 billion share repurchase program. As a result, the group expects to return approximately US$1.25 billion to shareholders in the 2022 financial year.
For the full 2022 financial year, Tapestry now forecasts revenue approaching US$6.6 billion, an increase from the prior outlook at US$6.4 billion. The group expects net interest expense of approximately US$65 million and anticipates paying down its July 2022 bonds at the end of fiscal 2022.