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Tapestry (TPR) Queued Up for Q1 Earnings: What's in Store?
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Tapestry, Inc. (TPR - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2023 numbers on Nov 10 before market open. The Zacks Consensus Estimate for revenues is pegged at $1,509 million, suggesting an improvement of 1.9% from the prior-year reported figure.
The Zacks Consensus Estimate for first-quarter revenues from Coach, Kate Spade and Stuart Weitzman brands is pegged at $1,131 million, $308 million and $70 million, indicating an increase of 1.4%, 2.8% and 5.3%, respectively.
The Zacks Consensus Estimate for first-quarter earnings per share has declined by a penny to 74 cents over the past seven days. The consensus mark indicates a decline of 9.8% from the year-ago period. Tapestry has a trailing four-quarter earnings surprise of 14.5%, on average.
Factors to Note
A consumer-centric approach, omnichannel capabilities, brand awareness and an emphasis on high-growth areas are likely to have benefited Tapestry’s first-quarter performance.
Its Acceleration Program has been a major contributing factor as well. The program is aimed at transforming the company into a leaner and more responsive organization with a clearly defined path and strategy for each brand. We also believe that continued strength in North America and Europe, with steady growth in the rest of Asia, might have offset the pandemic-related disruption in China.
On its last earnings call, Tapestry guided mid-single-digit growth in revenues on a constant-currency basis, which included a decline of approximately 15% projected in Greater China. On a reported basis, it expects global sales to increase slightly, including a negative impact of approximately 350 basis points from FX.
Also, we cannot ignore the impact of ongoing supply-chain issues and increasing freight costs. Meanwhile, any deleverage in SG&A expenses might get reflected in margins. Tapestry expects first-quarter earnings to be 75 cents a share, down from the 82 cents reported in the year-ago period.
Our proven model predicts an earnings beat for Tapestry this time. 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, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry has a Zacks Rank #3 and an Earnings ESP of +2.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the 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:
Arhaus (ARHS - Free Report) currently has an Earnings ESP of +6.67% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests an increase of 15.4% from the year-ago quarter.
Arhaus' top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $293.1 million, which indicates an increase of 44.2% from the figure reported in the prior-year quarter. ARHS has a trailing four-quarter earnings surprise of 92%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +2.35% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.54 suggests an increase of 22.1% from the year-ago quarter.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $1.16 suggests an increase of 20.8% from the year-ago quarter.
Dollar Tree’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, which suggests a rise of 6.5% from the figure reported in the prior-year quarter. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.
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Tapestry (TPR) Queued Up for Q1 Earnings: What's in Store?
Tapestry, Inc. (TPR - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2023 numbers on Nov 10 before market open. The Zacks Consensus Estimate for revenues is pegged at $1,509 million, suggesting an improvement of 1.9% from the prior-year reported figure.
The Zacks Consensus Estimate for first-quarter revenues from Coach, Kate Spade and Stuart Weitzman brands is pegged at $1,131 million, $308 million and $70 million, indicating an increase of 1.4%, 2.8% and 5.3%, respectively.
The Zacks Consensus Estimate for first-quarter earnings per share has declined by a penny to 74 cents over the past seven days. The consensus mark indicates a decline of 9.8% from the year-ago period. Tapestry has a trailing four-quarter earnings surprise of 14.5%, on average.
Factors to Note
A consumer-centric approach, omnichannel capabilities, brand awareness and an emphasis on high-growth areas are likely to have benefited Tapestry’s first-quarter performance.
Its Acceleration Program has been a major contributing factor as well. The program is aimed at transforming the company into a leaner and more responsive organization with a clearly defined path and strategy for each brand. We also believe that continued strength in North America and Europe, with steady growth in the rest of Asia, might have offset the pandemic-related disruption in China.
On its last earnings call, Tapestry guided mid-single-digit growth in revenues on a constant-currency basis, which included a decline of approximately 15% projected in Greater China. On a reported basis, it expects global sales to increase slightly, including a negative impact of approximately 350 basis points from FX.
Also, we cannot ignore the impact of ongoing supply-chain issues and increasing freight costs. Meanwhile, any deleverage in SG&A expenses might get reflected in margins. Tapestry expects first-quarter earnings to be 75 cents a share, down from the 82 cents reported in the year-ago period.
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. 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, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tapestry has a Zacks Rank #3 and an Earnings ESP of +2.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the 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:
Arhaus (ARHS - Free Report) currently has an Earnings ESP of +6.67% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests an increase of 15.4% from the year-ago quarter.
Arhaus' top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $293.1 million, which indicates an increase of 44.2% from the figure reported in the prior-year quarter. ARHS has a trailing four-quarter earnings surprise of 92%, on average.
Dollar General (DG - Free Report) currently has an Earnings ESP of +2.35% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $2.54 suggests an increase of 22.1% from the year-ago quarter.
Dollar General’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $9.43 billion, which suggests a rise of 10.7% from the figure reported in the prior-year quarter. DG delivered an earnings beat of 2.2%, on average, in the trailing four quarters.
Dollar Tree (DLTR - Free Report) currently has an Earnings ESP of +6.57% and a Zacks Rank #3. The company is likely to register an increase in the bottom line when it reports third-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of $1.16 suggests an increase of 20.8% from the year-ago quarter.
Dollar Tree’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $6.83 billion, which suggests a rise of 6.5% from the figure reported in the prior-year quarter. DLTR delivered an earnings beat of 8.6%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.