Tapestry Inc

$39.00

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SKU: TPR Category:

Description

Tapestry delivered a standout result for the 2021 fiscal with excellent recovery from the pandemic times. The company generated around $1.6 billion revenues from the global e-commerce channel alone and was able to heavily capitalize on the Chinese market. The company’s Greater China revenues reached the $1.1 billion mark, implying a growth of over 60% in the Mainland region. It is worth highlighting that Tapestry exceeded pre-pandemic sales in Q4 which is an important financial milestone. Additionally, the management was able to generate a free cash flow of $1.2 billion and closed the year in a strong cash position while reducing their leverage after reducing the load of their revolver credit facility. The company also delivered outstanding profitability improvements during the fiscal year with an operating income growth of 67% on a one-year basis and 14% on a two-year basis. Based on their strong financial position and underlying business trends, the management approved the re-establishment of their capital return programs indicating a strong future yield. They plan to return more than $750 million to shareholders through dividend and share repurchases in the 2022 fiscal. Overall, we are optimistic about Tapestry and maintain our ‘Buy’ recommendation with a revised target price.

Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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