Wall Street expects a year-over-year decline in earnings on lower revenues when Tapestry (TPR) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 15, 2024, might help the stock move higher if these key numbers are better than expectatio ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Tapestry (TPR) . This company, which is in the Zacks Retail - Apparel and Shoes industry, shows potential for another earnings beat. For the most recent quarter, Tapestry was expected to post earnings of $0.67 per share, but it reported $0.81 per share instead, representing a surprise of 20.90%. For the previous quarter, the c ...

Tapestry's international strategy, especially in key markets like Asia and Europe, has delivered substantial growth by tailoring products and marketing strategies to local preferences. Notably, revenues in Europe grew 19% year over year and other Asia markets (excluding China and Japan) saw a 15% increase in the fiscal third quarter. This targeted approach has bolstered TPR's presence across diverse global markets. Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessorie ...

Tapestry, Inc. (TPR) maintains a robust position in the global luxury market through proactive measures aimed at expanding its luxury brand portfolio and enhancing operational capabilities. Its strategic initiatives, spanning digital transformation to regional market adaptations, are precisely designed to align with evolving consumer preferences and market dynamics. By exercising disciplined financial management and pursuing forward-thinking growth strategies, Tapestry is well-prepared to navigate the chall ...

Core Insights - Tapestry, Inc. is strategically expanding its luxury brand portfolio and enhancing operational capabilities to strengthen its position in the global luxury market [1][2] - The company's disciplined financial management and customer-centric growth strategy are designed to navigate competitive challenges and drive continuous growth [2][3] Digital and Omnichannel Strategy - Tapestry is enhancing its digital and omnichannel strategies, launching platforms like katespadeoutlet.com to improve the shopping experience [4] - The digital business accounted for over 25% of total revenues in Q3 of fiscal 2024 [4] International Market Performance - Tapestry's international strategy has been successful, with revenues in Europe growing 19% year over year and other Asian markets (excluding China and Japan) seeing a 15% increase in Q3 [5] - The company tailors products and marketing strategies to local tastes, solidifying its global presence [5] Customer Engagement - A strong focus on customer centricity has helped Tapestry engage younger demographics, attracting 1.2 million new customers in North America during Q3 [6] - This focus on consumer preferences is expected to continue driving growth and market relevance [6] Acquisition Impact - The acquisition of Capri Holdings is anticipated to significantly enhance Tapestry's value and financial performance, creating a global luxury and fashion powerhouse [7] Financial Forecast - Tapestry expects to achieve over $6.6 billion in revenues for fiscal 2024, with a modest 1% growth on a constant-currency basis [10] - Revenue growth predictions vary regionally, with low-single-digit increases in Greater China and mid-single-digit rises in Japan, while other Asian regions and Europe are expected to see low-double-digit growth [11] Margin Improvement - Gross margin is projected to improve by 230 basis points, with decreasing freight costs contributing approximately 130 basis points to this improvement [12] - Earnings per share for the year are estimated between $4.20 and $4.25, indicating an 8-9% increase from the previous year [12] Brand Challenges - Kate Spade has faced a 5.6% decline in sales in Q3, highlighting challenges in maintaining market relevance [13] - Stuart Weitzman experienced a 17.9% drop in revenues, partly due to strategic reductions in off-price wholesale shipments [14]

Financial Performance - In Q3 fiscal 2024, net sales decreased by 1.8% to $1,482.4 million compared to $1,509.5 million in Q3 fiscal 2023[188] - Gross profit increased by 0.8% to $1,107.4 million, with a gross margin of 74.7% compared to 72.8% in the prior year[188] - Operating income decreased by 9.8% to $204.3 million, with an operating margin of 13.8% compared to 15.0% in Q3 fiscal 2023[188] - Net income fell by 25.3% to $139.4 million, resulting in a diluted earnings per share of $0.60, down from $0.78[188] - Net sales for the third quarter of fiscal 2024 decreased by 1.8% or $27.1 million to $1.48 billion compared to the same period in fiscal 2023[195] - Coach's net sales increased by 0.1% or $1.6 million to $1.15 billion, while Kate Spade and Stuart Weitzman saw declines of 5.6% and 17.8%, respectively[197] - Gross profit increased by 0.8% or $9.1 million to $1.11 billion, with a gross margin of 74.7%, up 190 basis points from the previous year[196] - Operating income decreased by 9.8% or $22.0 million to $204.3 million, resulting in an operating margin of 13.8%[203] - Net income decreased by 25.3% or $47.3 million to $139.4 million, while excluding items affecting comparability, net income increased by 1.9% to $190.1 million[209] - Net income per diluted share was $0.60, down from $0.78 in the prior year, but increased to $0.81 when excluding items affecting comparability[210] - The effective tax rate increased to 17.7% from 16.4% in the previous year, with a comparable rate of 19.9% when excluding items affecting comparability[208] - Net income decreased by 7.8% or $55.2 million to $656.7 million in the first nine months of fiscal 2024[232] Expenses and Costs - SG&A expenses rose by 3.6% or $31.1 million to $903.1 million, with SG&A as a percentage of net sales increasing to 60.9%[200] - Corporate expenses included in SG&A increased by 3.2% or $4 million to $128.7 million compared to the same quarter last year[204] - Corporate operating expenses rose by 31.3% or $39.0 million to $163.7 million in Q3 FY2024, with SG&A expenses as a percentage of net sales increasing by 20 basis points[36] - SG&A expenses increased by 5.7% or $149.8 million to $2.79 billion in the first nine months of FY2024, with SG&A as a percentage of net sales rising to 55.0%[225] - The company incurred total pre-tax charges of $166.6 million related to the Capri Acquisition, impacting operating income and net income significantly[216] - Acquisition costs related to the Capri Acquisition totaled $67.9 million, impacting operating income by $35.0 million and increasing interest expense by $32.9 million[192] Cash Flow and Liquidity - Net cash provided by operating activities increased by $424.8 million to $999.6 million in the first nine months of fiscal 2024[241] - Net cash used in investing activities was $486.1 million, a $526.7 million increase in cash used compared to the prior year[242] - Net cash provided by financing activities was $5.7 billion, a $6.5 billion increase compared to a cash use of $768.7 million in the prior year[245] - Cash and cash equivalents increased by $6.2 billion to $6.98 billion as of March 30, 2024[249] - As of March 30, 2024, total liquidity sources include $3,400.0 million in available credit facilities, with $2,000.0 million from the Revolving Facility and $1,400.0 million from the Capri Acquisition Term Loan Facilities[250] - The company has access to credit facilities and capital markets for various corporate purposes, including acquisition costs and restructuring initiatives[251] - Management believes that cash flows from operations and available financing will support operating, capital, and debt service requirements for fiscal 2024 and beyond[252] Strategic Initiatives - The Capri Acquisition is expected to close in calendar year 2024 for a total enterprise value of approximately $8.5 billion, financed through new senior unsecured notes and term loans[173] - The Company aims to prioritize growth in North America and China while exploring opportunities in under-penetrated markets like Southeast Asia and Europe[177] - The Capri Acquisition is intended to be financed through new senior unsecured notes, new term loans, and cash on hand, with regulatory approval received from all countries except the United States[257] - The company has a voluntary supply chain finance program to improve working capital efficiency, allowing suppliers to sell receivables on a non-recourse basis[254] Market Conditions - The macroeconomic environment remains challenging, with ongoing geopolitical instability and inflationary pressures impacting consumer spending[177] - The company continues to monitor the impact of the Covid-19 pandemic, which has not materially affected business results in the nine months ended March 30, 2024[183] - There have been no significant changes to the company's market risk management strategies as of the latest reporting period[261] Brand Performance - Kate Spade's operating income increased by $2.0 million to $10.0 million in Q3 FY2024, with an operating margin rise of 90 basis points to 3.6% compared to 2.7% in Q3 FY2023[36] - Stuart Weitzman reported an operating loss of $4.7 million in Q3 FY2024, a decrease of $5.5 million, resulting in an operating margin decline of 950 basis points to (8.4)%[36] - Coach's operating income rose by $127.7 million to $1.26 billion, resulting in an operating margin increase of 230 basis points to 32.9%[228] - The fair values of the Kate Spade brand reporting unit exceeded carrying values by approximately 20%, indicating potential risks related to future cash flows and profitability trends[260] - Coach's net sales increased by 3.6% or $131.9 million to $3.84 billion in the first nine months of FY2024, with a 4.7% increase when excluding foreign currency impacts[222] - Kate Spade's net sales decreased by 5.9% or $65.1 million to $1.04 billion in the first nine months of FY2024, primarily due to lower retail sales[222] - Stuart Weitzman's net sales decreased by 12.8% or $28.1 million to $190.9 million in the first nine months of FY2024, with a 11.9% decrease when excluding foreign currency impacts[222] Capital Expenditures - Capital expenditures for the three and nine months ended March 30, 2024, were $29.3 million and $88.4 million, respectively, with an expected total of approximately $140.0 million for fiscal 2024[255] Accounting and Compliance - The company performs annual impairment assessments of goodwill and brand intangibles, with no material changes to critical accounting policies noted as of March 30, 2024[259]

Tapestry, Inc. (NYSE:TPR) Q3 2024 Earnings Conference Call May 9, 2024 8:00 AM ET Company Participants Christina Colone - Global Head, Investor Relations Joanne Crevoiserat - Chief Executive Officer Scott Roe - Chief Financial Officer & Chief Operating Officer Todd Kahn - Chief Executive Officer & Brand President, Coach Conference Call Participants Bob Drbul - Guggenheim Ike Boruchow - Wells Fargo Matthew Boss - JPMorgan Lorraine Hutchinson - Bank of America Brook Roach - Goldman Sachs Michael Binetti - Eve ...

COACH © 2024 Tapestry, Inc. ▪ The ability to satisfy the conditions precedent to consummation of the proposed acquisition of Capri, ■ The ability to successfully execute our multi-year growth agenda; ▪ The outcome of the antitrust lawsuit by the Federal Trade Commission against us and Capri related to ■ The effect of existing and new competition in the marketplace; · The impact of tax and other legislation; and, Forward-kooking statements are neither historical fects nor assurances of future performance. In ...

Exhibit 99.1 CONTACTS: Tapestry, Inc. Media: Andrea Shaw Resnick Chief Communications Officer 212/629-2618 aresnick@tapestry.com Analysts and Investors: Christina Colone Global Head of Investor Relations 212/946-7252 ccolone@tapestry.com Kelsey Mueller 212/946-8183 Investor Relations kmueller@tapestry.com TAPESTRY, INC. DELIVERS Q3 EARNINGS AHEAD OF EXPECTATIONS Link to Download Tapestry's Q3 Earnings Presentation, Including Brand Highlights New York, May 9, 2024 – Tapestry, Inc. (NYSE: TPR), a house of ico ...

Financial Data and Key Metrics Changes - The company achieved record second quarter revenue and earnings per share, with growth outpacing expectations [29][42] - Gross margin expanded by 300 basis points year-over-year, driven by lower freight expenses and operational outperformance [56] - Operating income rose 14% compared to the prior year, with a record second quarter EPS of $1.63, representing a 20% increase [58][62] Business Line Data and Key Metrics Changes - Kate Spade's footwear sales rose double-digits, while jewelry remained a key acquisition vehicle [1] - Coach's leather goods, particularly the Tabby family, nearly doubled sales compared to last year, with strong performance among new and younger consumers [32] - Stuart Weitzman experienced growth in its core boot classification, driven by the SoHo and 5050 families [16] Market Data and Key Metrics Changes - Revenue in Greater China rose 19%, while Japan saw a 6% increase, and Other Asia and Europe grew by 9% and 11% respectively [21][63] - North America revenue was in line with the prior year, reflecting a healthy business model focused on brand health rather than chasing sales [63][101] Company Strategy and Development Direction - The company is focused on strengthening its core bag offerings, enhancing the omni-channel experience, and driving emotional marketing to boost brand relevance [8][12] - There is a commitment to operational excellence and innovation, with plans to introduce new materials and designs in the handbag assortment [11][12] - The acquisition of Capri is expected to drive significant value creation and enhance cash flow, with a focus on disciplined financial operations [86][106] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the brand's positioning and the effectiveness of marketing strategies, particularly in attracting younger consumers [78][97] - The company anticipates continued growth in the fourth quarter, supported by easier comparisons and strong brand positioning [124] - There is an expectation of mid-single-digit sales growth in Greater China and Japan, with a focus on maintaining higher margins [81][82] Other Important Information - The company opened a new multi-brand fulfillment center in Las Vegas to enhance omni-channel capabilities [40] - Free cash flow for the quarter was $804 million, with inventory levels 15% below the prior year [64] - A quarterly cash dividend of $0.35 per share was declared, representing a 17% increase compared to last year [66] Q&A Session Summary Question: Can you talk about the strength you're seeing at Coach and your confidence in maintaining momentum? - Management remains excited about the Coach brand's potential and sees strong economic fundamentals supporting the acquisition [89][91] Question: Can you provide insights on the health of the Chinese consumer and what's driving Coach's strength in China? - Management noted strong consumer desire for the brand and high purchase intent in the handbag category, indicating a positive outlook for Coach in China [97][98] Question: What are your thoughts on the outlook for North America handbag and accessories for Coach and Kate Spade? - Management indicated that the North American market is competitive but believes in maintaining healthy growth through innovation and brand messaging [101]