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.
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.