Why Tapestry Is Tuesday’s Big Earnings Winner
Tapestry released better-than-expected fiscal fourth-quarter earnings report before the markets opened on Tuesday.
When Tapestry Inc. (NYSE: TPR) released its fiscal fourth-quarter earnings report before the markets opened on Tuesday, the company formerly known as Coach said that it had $0.60 in earnings per share (EPS) and $1.48 billion in revenue. Consensus estimates had called for $0.57 in EPS and revenue of $1.47 billion. The same period of last year reportedly had EPS of $0.50 on $1.13 billion in revenue.
During the most recent quarter, net sales increased 31% on a reported basis, while on a constant currency basis they increased 29%.
In terms of its segments the company reported as follows:
- Coach net sales increased 5% year over year to $1.10 billion.
- Kate Spade net sales totaled $312 million, reflecting, in part, the strategic pullback in wholesale disposition and online flash sales, partially offset by the consolidation of the joint ventures for Mainland China.
- Stuart Weitzman net sales decreased to $73 million from $88 million in the same period last year.
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Looking ahead to the 2019 fiscal full year, the company expects to see EPS in the range of $2.70 to $2.80 and revenues between $6.1 billion and $6.2 billion. Consensus estimates call for $2.60 in EPS and $5.86 billion in revenue.
Victor Luis, CEO of Tapestry, commented:
Our strong fourth quarter results capped an excellent FY18 performance for Tapestry which demonstrated the power of our multi-brand model. We achieved our annual sales and operating income guidance, driving significant growth while earnings per share outpaced our forecast. It was also a year of many milestones, as we completed the acquisition of Kate Spade and evolved into a true House of Brands, establishing Tapestry as our new corporate identity. Our company is built on shared values and a common operating platform while our brands retain their distinctive personalities, individual narratives and unique positioning.
Shares of Tapestry were last seen up about 12.5% at $53.41, with a consensus analyst price target of $555.65 and a 52-week trading range of $2.93 to $55.50.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
