Tapestry's stock jumps as strong Coach sales fuel profit beat, raised outlook
By Tomi Kilgore
Coach sales rose above expectations, while Kate Spade sales fell below views
Shares of Tapestry Inc. surged toward a six-month high in premarket trading Thursday after a profit beat and raised outlook, as strength in the fashion company's Coach brand offset weakness at Kate Spade.
Net income for the quarter ending Dec. 30 was $322.3 million, or $1.39 a share, compared with $329.9 million, or $1.36 a share, in the same period a year ago. Excluding nonrecurring items, adjusted earnings per share of $1.63 were well ahead of the FactSet consensus of $1.46.
The stock (TPR) climbed 2% in premarket trading, putting it on track to trade around the highest closing prices since Aug. 9, the day before the company announced an agreement to buy Capri Holdings Ltd. (CPRI), the parent of the Versace, Michael Kors and Jimmy Choo brands.
Sales grew 2.9% to $2.08 billion, above the FactSet consensus of $2.06 billion.
Among the company's brands, Coach sales increased 6.4% to $1.54 billion, above the FactSet consensus of $1.50 billion, while Kate Spade sales declined 6.1% to $460.4 million to miss expectations of $479.0 million. Stuart Weitzman sales fell 3.7% to $82.2 million, to top forecasts of $79.3 million.
"During the key holiday season, our passionate teams delivered for our customers, fueling brand magic through innovative product, engaging storytelling, and operational excellence," said Chief Executive Joanne Crevoiserat. "Importantly, we drove record revenue and EPS, while advancing our strategic agenda."
For fiscal 2024, the company raised its EPS guidance range to $4.20 to $4.25 from $4.10 to $4.15 but kept its revenue guidance intact at "approximately" $6.7 billion.
Regarding the Capri acquisition deal, Tapestry said it "remains confident" in its ability to close the deal this year.
Tapestry's stock has soared 46.9% over the past three months through Wednesday, while the S&P 500 has gained 14%.
-Tomi Kilgore
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
02-08-24 0758ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Powell Unfazed By Sticky Inflation, but Rate Cuts Are Far Off
-
After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?
-
Best- and Worst-Performing Stocks of April 2024
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Small-Cap and Value Stocks Are Undervalued
-
Why We Expect the Job Market’s Slowdown to Renew in 2024
-
5 Undervalued Stocks to Buy to Play a Little Defense
-
10 Top-Performing Dividend Stocks of the Month
-
Marathon Petroleum Earnings: No Change to Competitive Position, but Shares Look Expensive
-
Charlie Munger and How Not to Invest
-
Look Inside Berkshire Hathaway’s Portfolio Before Its Annual Meeting
-
After Earnings, Is AT&T Stock a Buy, a Sell, or Fairly Valued?
-
Mastercard Earnings: A Stable Environment Highlights the Firm’s Strengths
-
Pfizer Earnings: Solid Results Supported by Steady Tracking Toward $4 Billion In Cost Cuts
-
Starbucks Earnings: Not a Lot to Like About Results as Global Traffic Sputters