What Lies Ahead For Tapestry's Stock Post Q4 Results?

Core Viewpoint - Tapestry, Inc. is expected to report strong fiscal Q4 results, with revenues and earnings likely exceeding expectations, driven by the upcoming acquisition of Capri Holdings for $8.5 billion, which will significantly enhance its luxury brand portfolio [2][5]. Financial Performance - Tapestry's Q3 2024 results showed flat year-over-year sales for Coach at $1.15 billion, while Kate Spade and Stuart Weitzman experienced declines of 6% and 18% respectively [3]. - The company's U.S. sales fell by 3% year-over-year, but international sales grew by 3% at constant currency, with Europe and Asia (excluding China) showing significant growth of 19% and 15% respectively [3]. - Tapestry's Q4 2024 revenue is estimated to be around $1.6 billion, slightly above consensus estimates, with a full-year revenue expectation of $6.6 billion [5]. Earnings Estimates - The expected earnings per share (EPS) for Q4 2024 is 92 cents, marginally above consensus estimates, with an operating margin improvement of 110 basis points year-over-year to 16.1% in Q3 [6]. - The adjusted EPS for Q3 was $0.81, which beat market expectations, while the diluted EPS fell 24% year-over-year to 60 cents [6]. Valuation Insights - Tapestry's stock is valued at approximately $46 per share, which is 23% higher than the current market price, based on an EPS estimate of around $4.24 and a P/E multiple of close to 10.9x for fiscal 2024 [7]. - The stock has shown a strong gain of 35% from early January 2021 to around $38, although it underperformed the S&P 500 in 2023 [4].