Tapestry (TPR) came out with quarterly earnings of $1.02 per share, beating the Zacks Consensus Estimate of $0.95 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.37%. A quarter ago, it was expected that this maker of high-end shoes and handbags would post earnings of $0.88 per share when it actually produced earnings of $0.92, delivering a surprise of 4.55%.Over the last four qua ...

Revenue Performance - Revenue totaled $1.51 billion, approximately in-line with prior year on both reported and constant currency basis, with FX representing a 40-basis point headwind[7] - Net sales for the quarter ended September 28, 2024 were $1,507.5 million, a slight decrease of 0.4% compared to $1,513.2 million in the same period last year[22] - Coach brand revenue grew 2% at constant currency to $1.17 billion, while Kate Spade revenue declined 6% and Stuart Weitzman grew 2%[9] - Coach brand sales grew 1% year-over-year to $1,170.6 million, with constant currency growth of 2%[23] - Kate Spade sales declined 7% to $283.2 million, with constant currency decline of 6%[23] - Stuart Weitzman sales increased 2% to $53.7 million, with constant currency growth of 2%[23] Gross Margin and Profitability - Gross margin expanded by 280 basis points to 75.3%, driven by operational improvements, lower freight expense, and FX tailwinds[6][7] - Gross profit increased to $1,134.9 million in Q1 2024, up 3.4% from $1,097.7 million in Q1 2023[22] - North America revenue declined 1%, but operating margin and profit dollars increased due to gross margin expansion[4] - Operating income was $252.0 million, down slightly from $253.2 million in the prior year period[22] - Net income decreased 4.3% to $186.6 million compared to $195.0 million in Q1 2023[22] - Diluted EPS was $0.79, down from $0.84 in the same quarter last year[22] Cash Flow and Financial Position - Cash flow from operating activities was $120 million, and free cash flow was $94 million, supporting long-term growth and shareholder returns[4][10] - Free cash flow for the period is calculated as $119.5 million (Net cash flows from operating activities) less $25.6 million (Purchases of property and equipment), resulting in $93.9 million[30][32][33] - Net cash provided by operating activities was $119.5 million for the period ending September 28, 2024, compared to $75.3 million for the same period in 2023[32] - Net cash provided by investing activities was $190.1 million, driven by $1,694.9 million in proceeds from maturities and sales of investments, offset by $1,479.2 million in purchases of investments[33] - Cash and cash equivalents increased by $320.9 million to $6,462.9 million as of September 28, 2024, compared to $6,142.0 million at the beginning of the period[34] - Total assets increased to $13,728.9 million as of September 28, 2024, compared to $13,396.3 million as of June 29, 2024[31] International Performance - International revenue grew 2% at constant currency, with Europe up 27% and APAC down 2%[4] - Coach's international store count decreased by 12 stores to 594 as of September 28, 2024, due to 16 closures and 4 openings[35] - Kate Spade's international store count decreased by 3 stores to 178 as of September 28, 2024, with 6 closures and 3 openings[35] - Stuart Weitzman's international store count remained flat at 60 stores as of September 28, 2024, with 2 openings and 2 closures[35] Direct-to-Consumer and Customer Acquisition - Direct-to-consumer sales were in-line with prior year, with digital revenue up high-single digits and brick-and-mortar sales down low-single digits[5] - The company acquired approximately 1.4 million new customers in North America, with over half being Gen Z and Millennials[3] Inventory and Expenses - Inventory increased to $1.03 billion, reflecting higher in-transit levels, consistent with expectations[10] - Corporate SG&A expenses increased to $154.2 million, up from $136.1 million in Q1 2023[24] - The company reported $33.4 million in acquisition costs affecting comparability in Q1 2024[24] Outlook and Guidance - The company raised its full-year revenue outlook to over $6.75 billion, representing 1% to 2% growth, and expects EPS of $4.50 to $4.55[13][14]

Wall Street expects a year-over-year increase in earnings on lower revenues when Tapestry (TPR) reports results for the quarter ended September 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 November 7, 2024, might help the stock move higher if these key numbers are better than expe ...

Have you been paying attention to shares of Tapestry (TPR) ? Shares have been on the move with the stock up 5.3% over the past month. The stock hit a new 52-week high of $51.59 in the previous session. Tapestry has gained 37.2% since the start of the year compared to the 20.4% move for the Zacks Retail-Wholesale sector and the 8.1% return for the Zacks Retail - Apparel and Shoes industry. What's Driving the Outperformance? The stock has a great record of positive earnings surprises, as it hasn't missed our ...

Tapestry (TPR) shares rallied 13.5% in the last trading session to close at $50.49. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.4% loss over the past four weeks. Tapestry's growth strategy hinges on strengthening its brand, enhancing customer engagement, and expanding its market presence. The company's strong international performance highlights its adaptability and resilience across diverse markets. Ad ...

In this articleA federal judge blocked Tapestry's acquisition of Capri on Thursday following a brief trial last month in New York. In her order, Judge Jennifer Rochon granted the Federal Trade Commission's motion for a preliminary injuction to block the proposed merger, which would marry America's two largest luxury houses. Tapestry's stock surged 14% after the order was made public while Capri's plunged more than 52%.This is breaking news. Please refresh for updates. ...

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Have you evaluated the performance of Tapestry's (TPR) international operations for the quarter ending June 2024? Given the extensive global presence of this maker of high-end shoes and handbags, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth. In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors ...

Tom Werner Investment summary My recommendation for Tapestry, Inc. (NYSE:TPR) is a hold rating. Given the uncertainties and visible overhangs around the stock, I expect the share price and valuation to be range-bound in the near term. While there have been some positive developments so far, there are still a lot of grounds for management to cover and show growth recovery before I am convinced that revenue is set to accelerate. Business Overview TPR is a designer and retailer of handbags, footwear, and acces ...

Core Insights - The luxury market is experiencing a slowdown, particularly in China and the U.S., with most brands reporting declining sales, except for Hermès [1][2] - U.S. luxury consumers are cutting back on spending, with high-income spending down 5% in Q2 2024, the lowest since Q2 2020 [4][5] - The overall personal luxury goods market in the Americas saw an 8% decline in 2023 compared to 2022, with U.S. consumers accounting for approximately 30% of the nearly $400 billion market [3][6] Company Performance - LVMH reported a 1% drop in U.S. revenues for H1 2024, with its Fashion and Leather Goods segment down 8% to $3.7 billion [7][8] - Tapestry's revenues were flat year-over-year at $6.7 billion, with a 2% decline in Q4 revenues [11][12] - Capri Holdings experienced a 13% revenue decline in Q1 2025, totaling $1.1 billion, following an 8.4% drop in Q4 2024 [15][16] Market Trends - The U.S. luxury market is showing signs of weakness, with a broadening decline across various brands [6][19] - Multi-brand retailers are seeing a sharper decline in spending compared to direct-to-consumer channels, with a 15% drop in Q2 for multi-brand versus a 10% drop for single-brand DTC [19] - Affluent consumers are increasingly cautious, with 41% planning to spend the same and 35% expecting to spend less on luxury [25][26] Consumer Sentiment - A significant portion of affluent Americans (24%) believe the economy has entered a recession, impacting their willingness to spend on luxury [28][29] - The desire for luxury is fading, with over half of affluent consumers rarely or only occasionally selecting luxury options [29][30]