We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tapestry (TPR) to Report Q2 Earnings: Factors to Consider
Read MoreHide Full Article
Tapestry, Inc. (TPR - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for revenues is pegged at $1,991 million, suggesting an improvement of 18.1% from the prior-year reported figure.
The Zacks Consensus Estimate for second-quarter earnings per share has increased by a penny to $1.19 over the past 30 days, and indicates an increase of 3.5% from the year-ago period.
The owner of Coach, Kate Spade and Stuart Weitzman brands has a trailing four-quarter earnings surprise of 29%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 18.8%.
Factors to Note
Consumers’ return to active social lifestyle has spurred demand for accessories and branded lifestyle products, and Tapestry is likely to have benefited from the same. The company has been deepening engagement with consumers, creating innovative and compelling products, and enhancing digital and data analytics capabilities. Strength in North America as well as sustained growth in digital and China might have favorably impacted the company’s top-line performance in the quarter to be reported.
Tapestry’s Acceleration Program, aimed at transforming the company into a leaner and more responsive organization as well as consumer-centric and data-driven, has been a major catalyst. The company’s focus on improving SKU productivity, maintaining price discipline and lowering promotional activity might have contributed to margins.
From the growth perspective, China remains a bright spot for the company, and is likely to have driven the top line in the quarter to be reported. The company has been accelerating growth in the region through tailored and innovative product assortments, enhanced marketing and expanded reach across direct channels and third-party online distribution.
We note that the Zacks Consensus Estimate for Coach, Kate Spade and Stuart Weitzman brands' revenues is pegged at $1,449 million, $435 million and $101 million, respectively. This indicates a respective year-over-year increase of 18.3%, 15.8% and 19.5% for Coach, Kate Spade and Stuart Weitzman.
While aforementioned factors instill optimism regarding the outcome of the results, we cannot ignore the impact of ongoing supply chain headwinds and increased freight costs due to the pandemic. Also, any deleverage in SG&A expenses might get reflected in margins.
Our proven model predicts an earnings beat for Tapestry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry has a Zacks Rank #2 and an Earnings ESP of +1.09%.
3 More Stocks With Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank #2. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 58 cents suggests an increase of 29% from the year-ago reported number.
Gildan Activewear’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests an increase of 5.9% from the prior-year quarter. GIL has a trailing four-quarter earnings surprise of 85%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.48 suggests an increase of 12.7% from the year-ago quarter’s reported figure.
Five Below's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which indicates an improvement of 17.1% from the figure reported in the prior-year quarter. FIVE has a trailing four-quarter earnings surprise of 22.4%, on average.
Target (TGT - Free Report) currently has an Earnings ESP of +0.50% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $2.85 suggests growth of 6.7% from the year-ago quarter’s reported figure.
Target’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $31.53 billion, indicating an increase of 11.3% from the year-ago quarter. TGT has a trailing four-quarter earnings surprise of 19.7%, on average.
Image: Bigstock
Tapestry (TPR) to Report Q2 Earnings: Factors to Consider
Tapestry, Inc. (TPR - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for revenues is pegged at $1,991 million, suggesting an improvement of 18.1% from the prior-year reported figure.
The Zacks Consensus Estimate for second-quarter earnings per share has increased by a penny to $1.19 over the past 30 days, and indicates an increase of 3.5% from the year-ago period.
The owner of Coach, Kate Spade and Stuart Weitzman brands has a trailing four-quarter earnings surprise of 29%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 18.8%.
Factors to Note
Consumers’ return to active social lifestyle has spurred demand for accessories and branded lifestyle products, and Tapestry is likely to have benefited from the same. The company has been deepening engagement with consumers, creating innovative and compelling products, and enhancing digital and data analytics capabilities. Strength in North America as well as sustained growth in digital and China might have favorably impacted the company’s top-line performance in the quarter to be reported.
Tapestry’s Acceleration Program, aimed at transforming the company into a leaner and more responsive organization as well as consumer-centric and data-driven, has been a major catalyst. The company’s focus on improving SKU productivity, maintaining price discipline and lowering promotional activity might have contributed to margins.
From the growth perspective, China remains a bright spot for the company, and is likely to have driven the top line in the quarter to be reported. The company has been accelerating growth in the region through tailored and innovative product assortments, enhanced marketing and expanded reach across direct channels and third-party online distribution.
We note that the Zacks Consensus Estimate for Coach, Kate Spade and Stuart Weitzman brands' revenues is pegged at $1,449 million, $435 million and $101 million, respectively. This indicates a respective year-over-year increase of 18.3%, 15.8% and 19.5% for Coach, Kate Spade and Stuart Weitzman.
While aforementioned factors instill optimism regarding the outcome of the results, we cannot ignore the impact of ongoing supply chain headwinds and increased freight costs due to the pandemic. Also, any deleverage in SG&A expenses might get reflected in margins.
Tapestry, Inc. Price, Consensus and EPS Surprise
Tapestry, Inc. price-consensus-eps-surprise-chart | Tapestry, Inc. Quote
What Our Zacks Model Says
Our proven model predicts an earnings beat for Tapestry this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry has a Zacks Rank #2 and an Earnings ESP of +1.09%.
3 More Stocks With Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank #2. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of 58 cents suggests an increase of 29% from the year-ago reported number.
Gildan Activewear’s top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests an increase of 5.9% from the prior-year quarter. GIL has a trailing four-quarter earnings surprise of 85%, on average.
Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank #3. The company is likely to register bottom-line improvement when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.48 suggests an increase of 12.7% from the year-ago quarter’s reported figure.
Five Below's top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.01 billion, which indicates an improvement of 17.1% from the figure reported in the prior-year quarter. FIVE has a trailing four-quarter earnings surprise of 22.4%, on average.
Target (TGT - Free Report) currently has an Earnings ESP of +0.50% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings per share of $2.85 suggests growth of 6.7% from the year-ago quarter’s reported figure.
Target’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $31.53 billion, indicating an increase of 11.3% from the year-ago quarter. TGT has a trailing four-quarter earnings surprise of 19.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.