UKRAINE - 2021/05/02: In this photo illustration a Tapestry, Inc. logo of an US multinational luxury ... [+] fashion holding company is seen on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Note: Tapestry's FY'24 ended July 2024. Tapestry (NYSE: TPR), a luxury goods retailer of handbags, shoes, and accessories, is scheduled to report its fiscal fourth-quarter results on Thursday, August 15. We expect the ...

Analysts on Wall Street project that Tapestry (TPR) will announce quarterly earnings of $0.88 per share in its forthcoming report, representing a decline of 7.4% year over year. Revenues are projected to reach $1.57 billion, declining 2.9% from the same quarter last year. Over the last 30 days, there has been a downward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over ...

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]

Financial Data and Key Metrics Changes - The company reported total revenue in line with the prior year on a constant currency basis, consistent with the low end of guidance, with international growth of 3% at constant currency [13][57] - Gross margin expanded significantly, achieving the strongest third quarter gross margin in nearly two decades, 190 basis points above last year, driven by lower freight expenses and operational outperformance [59][60] - Operating income rose 6% compared to the prior year, with EPS of $0.81 beating expectations by approximately $0.15 [61][66] Business Line Data and Key Metrics Changes - Coach brand delivered strong performance with handbag AUR gains at constant currency, particularly with the success of the Tabby family, which nearly doubled revenue compared to last year [22][24] - Kate Spade faced challenges in top line results but exceeded profit expectations due to gross margin expansion and disciplined expense management [32][34] - Stuart Weitzman experienced pressure in key markets, but the brand remains focused on product and marketing investments for long-term growth [41][42] Market Data and Key Metrics Changes - In North America, revenue declined 3% amid a challenging consumer backdrop, while international markets showed growth, with Europe up 19% and Other Asia up 15% [15][54] - Greater China sales declined 2% against last year's strong spending, but the company remains confident in long-term opportunities in the region [14][55] - The company acquired approximately 1.2 million new customers in North America, with over half being Gen Z and millennials, indicating a successful strategy to attract younger consumers [16][29] Company Strategy and Development Direction - The company is focused on disciplined brand building and operational excellence, with a commitment to innovation and consumer engagement [11][20] - The acquisition of Capri is seen as a strategic opportunity to expand the brand portfolio and enhance competitive positioning in the luxury market [48][49] - The company aims to maintain strong gross margins while investing in brand building and marketing to drive long-term growth [66][75] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2025 EPS targets despite a challenging environment, emphasizing the strength of the Coach brand and its ability to attract younger consumers [80][85] - The company is navigating a cautious consumer backdrop in North America but remains focused on innovation and brand building to drive engagement and growth [97][106] - Management highlighted the importance of emotional connections with consumers and the resilience of the luxury category during economic downturns [106][108] Other Important Information - The company declared a quarterly cash dividend of $0.35 per common share, representing $80 million in dividend payments for the quarter [65] - Free cash flow for the quarter was an inflow of $79 million, with inventory levels at quarter end 12% below the prior year [63][64] - The company expects to return approximately $325 million to shareholders through dividends for the fiscal year, reflecting a 17% increase compared to last year [65] Q&A Session Summary Question: Confidence in FY 2025 EPS target - Management reiterated confidence in achieving the FY 2025 EPS target of $5, citing strong performance and brand strength [80][81] Question: Q4 expectations for Coach in North America and China - Management indicated expectations of down double-digits for China in Q4, while Coach is expected to continue growing with a focus on disciplined customer acquisition [92][94] Question: North America demand progression for Coach - Management noted that consumer confidence is low, but innovation is driving higher gross margins and new customer acquisition [97][98] Question: Long-term outlook for Coach gross margin - Management expressed confidence in sustaining gross margin growth through investments in product quality and marketing [131][132] Question: Pricing and elasticity concerns - Management emphasized the importance of emotional connections and innovation in maintaining pricing power and AUR growth [116][118]

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 ...