Tapestry, Inc. (NYSE: TPR)
Shares of Tapestry, Inc. rocketed on Tuesday as the company presented its fiscal quarterly for the three months to June 30.
Popular for Kate Spade and Coach handbag brands, Tapestry, Inc. edged estimates with fourth-quarter earnings and revenue of $211.7 million and $1.48 billion, respectively.
Stuart Weitzman revenue slightly fell short of the Wall Street estimates, but Kate Spade and Coach sales topped expectations.
The company further excited investors by issuing a rosy fiscal 2019 sales guidance. TRR stock has climbed nearly 7.3% since the beginning of the year, while the Standard and Poor’s 500 has jumped 5.6%.
TPR Earnings & Outlook
The New York-based company said it had net income of $211.7 million, or $0.73 per share for the quarter.
This compares to net income of $151.7 million, or $0.53 per share reported in the fourth quarter of 2017. After stripping special items, the company had adjusted earnings of $0.60 per share.
Revenue for the quarter was $1.48 billion, compared to $1.13 billion, and ahead of $1.47 billion estimates. Analysts polled by Thompson Reuters expected the company to report adjusted earnings of $0.57 per share.
Kate Spade sales topped expectations of $269.2 million, after coming in at $312 million from the prior-year quarter.
Coach sales of $1.1 billion during the quarter, also beat estimates of $969.2 million. For fiscal 2019 year, the company sees revenue in the range of $6.1 billion to $6.2 billion.
Tapestry CEO Comments
“Our strong fourth quarter results capped an excellent FY18 performance for Tapestry which demonstrated the power of our multi-brand model. We achieved our annual sales and operating income guidance, driving significant growth while earnings per share outpaced our forecast. It was also a year of many milestones, as we completed the acquisition of Kate Spade and evolved into a true House of Brands, establishing Tapestry as our new corporate identity. Our company is built on shared values and a common operating platform while our brands retain their distinctive personalities, individual narratives and unique positioning,” said Victor Luis, Chief Executive Officer of Tapestry.
Tapestry, Inc. Company Profile
Tapestry, Inc. provides luxury accessories and lifestyle brands. The company offers handbags, wallets, money pieces, wristlets and cosmetic cases, key rings, and charms, as well as address books, time management accessories, sketchbooks, and portfolios for women; and business cases, computer bags, messenger-style bags, backpacks, totes, wallets, card cases, belts, sunglasses, watches, and novelty accessories for men.
Further, the company licenses rights to market and distribute its eyewear, watches, and fragrances under the Coach brand name.
It markets its products to consumers through a network of Coach-operated stores, including Internet in North America; and Coach-operated stores and concession shop-in-shops in various countries around the world.
The company sells its Stuart Weitzman products through department stores; independent third party distributors; and stores, including the Internet.
It operates approximately 1,300 stores under the Coach, Kate spade New York, and Stuart Weitzman brands.
The company was formerly known as Coach, Inc. and changed its name to Tapestry, Inc. in October 2017. Tapestry, Inc. was founded in 1941 by Dawn Hughes. –Yahoo