Tapestry Sees Higher Earnings In FY22, But Below Market View; Declares Dividend

(RTTNews) - While reporting a return to profit in its fourth quarter on strong revenues, Tapestry, Inc. (TPR) Thursday said it expects fiscal 2022 earnings per share of $3.30 to $3.35, reflecting leverage to the bottom line.

The New York-based house of modern luxury accessories and lifestyle brands projects full-year revenue of around $6.4 billion, representing mid-teens growth versus the prior year on a 52-week, comparable basis.

The company's fiscal 2021 earnings per share were $2.95 with net sales totaling $5.75 billion.

On average, analysts polled by Thomson Reuters expect earnings of $3.18 per share on sales of $6.08 billion for the year. Analysts' estimates typically exclude special items.

Further, the Board declared a quarterly cash dividend of $0.25 per share payable on September 27, to shareholders of record as of the close of business on September 7, with an anticipated annual dividend rate of $1.00 per share.

The Company also intends to repurchase approximately $500 million worth of stock in Fiscal 2022 under its current authorization. Taken together, Tapestry plans to deploy over $750 million to shareholders in Fiscal 2022 through dividends and share repurchases, reflecting a balanced approach to shareholder returns.

In addition, the company intends to repay its July 2022 bonds, totaling $400 million, at the end of Fiscal 2022. This is consistent with the Company's goal to reduce leverage through a combination of organic profit growth and debt repayment.

In pre-market activity on NYSE, Tapestry shares were losing around 1.8 percent to trade at $40.70.