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Tapestry Not Providing FY21 Outlook; Announces Acceleration Program For Profitability

While reporting financial results for the fourth quarter on Thursday, luxury accessories and lifestyle brand Tapestry Inc. (TPR) said it is not providing detailed guidance for fiscal 2021, due to the dynamic nature of the Covid-19 crisis and lack of visibility.

The company also announced an acceleration program with multi-year initiatives to drive profitable growth across the portfolio.

"Through our Acceleration Program, we are transforming into a world-class consumer centric organization that is more agile and data-driven with a digital-first mindset. We believe these initiatives will create stronger connections with our customers, fueling accelerated growth and profitability for Tapestry and each of our brands," said Joanne Crevoiserat, Interim CEO.

The company believes the successful execution will drive accelerated revenue growth, higher gross margins and substantial operating leverage across Tapestry's portfolio.

The company estimates that it will realize approximately $300 million in gross run rate expense savings from these initiatives, including $200 million projected for fiscal 2021. The Company also expects to incur total charges of approximately $185 to $200 million under the Acceleration Program.

Assuming continued steady recovery as it emerges from the pandemic, the company expects a return to sustained topline growth in the second half of fiscal 2021, with bottom line growth in each of fiscal 2021, 2022 and 2023.

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