Formerly known as Coach, Inc., Tapestry (TPR - Free Report) is a luxury retailer that owns and operates the Coach, Kate Spade & Company, and Stuart Weitzman brands. All three offer popular lifestyle products like handbags, clothes, shoes, and fragrance.
Shares Pop 10% on Great Q1 Earnings
Following the release of its fiscal first-quarter earnings report, TPR rallied 10% as investors cheered the better-than-expected results.
Revenue came in at $1.48 billion, up 26% year-over-year and 9% higher than pre-pandemic levels, while digital sales surged an impressive 50% over the prior-year period. Regionally, North American sales grew 40% and Chine sales increased 25%.
Gross profit margin jumped to 72.2% from 70.8%, and adjusted earnings came in at $0.82 per share, easily beating the consensus estimate of $0.69.
Because of the great results across the board, Tapestry’s Board of Directors approved an incremental $1 billion share repurchase program. The retailer also declared a quarterly cash dividend of $0.25 per share, with the goal to return $250 million to shareholders through dividends in 2022; shares now yield 2.43% on an annual basis
Can TPR Surge Higher?
Year-to-date, shares of Tapestry have climbed almost 33%. Estimates have been rising too, and TPR is a Zacks Rank #1 (Strong Buy) right now.
For fiscal 2022, eight analysts have revised their bottom-line estimate upwards over the last 60 days, and the Zacks Consensus Estimate has moved up 16 cents to $3.50 per share. Earnings are expected to grow about 17.8% compared to the prior year, and in 2023, Tapestry’s bottom line is forecasted to increase another 12.2%.
Looking ahead, Tapestry increased its revenue target from $6.4 billion to $6.6 million for the year, which would be a record for the company. Tapestry also upped its EPS range from $3.30 to $3.35 to $3.45 to $3.50.
Over the years, Tapestry’s many brands have built a large customer following. Combined with its bullish guidance for the rest of the year, this brand loyalty will likely help the retailer expand its footprint and grow its market share even as the Covid-19 crisis lingers.
If you’re an investor searching for a retail stock to add to your portfolio, make sure to keep TPR on your shortlist.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Formerly known as Coach, Inc., Tapestry (TPR - Free Report) is a luxury retailer that owns and operates the Coach, Kate Spade & Company, and Stuart Weitzman brands. All three offer popular lifestyle products like handbags, clothes, shoes, and fragrance.
Shares Pop 10% on Great Q1 Earnings
Following the release of its fiscal first-quarter earnings report, TPR rallied 10% as investors cheered the better-than-expected results.
Revenue came in at $1.48 billion, up 26% year-over-year and 9% higher than pre-pandemic levels, while digital sales surged an impressive 50% over the prior-year period. Regionally, North American sales grew 40% and Chine sales increased 25%.
Gross profit margin jumped to 72.2% from 70.8%, and adjusted earnings came in at $0.82 per share, easily beating the consensus estimate of $0.69.
Because of the great results across the board, Tapestry’s Board of Directors approved an incremental $1 billion share repurchase program. The retailer also declared a quarterly cash dividend of $0.25 per share, with the goal to return $250 million to shareholders through dividends in 2022; shares now yield 2.43% on an annual basis
Can TPR Surge Higher?
Year-to-date, shares of Tapestry have climbed almost 33%. Estimates have been rising too, and TPR is a Zacks Rank #1 (Strong Buy) right now.
For fiscal 2022, eight analysts have revised their bottom-line estimate upwards over the last 60 days, and the Zacks Consensus Estimate has moved up 16 cents to $3.50 per share. Earnings are expected to grow about 17.8% compared to the prior year, and in 2023, Tapestry’s bottom line is forecasted to increase another 12.2%.
Looking ahead, Tapestry increased its revenue target from $6.4 billion to $6.6 million for the year, which would be a record for the company. Tapestry also upped its EPS range from $3.30 to $3.35 to $3.45 to $3.50.
Over the years, Tapestry’s many brands have built a large customer following. Combined with its bullish guidance for the rest of the year, this brand loyalty will likely help the retailer expand its footprint and grow its market share even as the Covid-19 crisis lingers.
If you’re an investor searching for a retail stock to add to your portfolio, make sure to keep TPR on your shortlist.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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