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Here's How Tapestry (TPR) is Placed Ahead of Q1 Earnings
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We expect Tapestry, Inc. (TPR - Free Report) to report year-over-year increases in both the top and bottom lines when it releases first-quarter fiscal 2024 earnings on Nov 9, before market open.
The Zacks Consensus Estimate for quarterly earnings has been stable at 90 cents per share over the past 30 days. The same suggests an increase of about 13.9% from the year-earlier quarter’s figure. The consensus estimate of $1,544 million for quarterly revenues indicates growth of about 2.5% from the prior-year quarter’s figure.
In the last reported quarter, the company’s bottom line underperformed the Zacks Consensus Estimate by a margin of 1%. Tapestry has a trailing four-quarter earnings surprise of 11.5%, on average.
Factors to Note
Challenging market conditions in both China and North America might have impacted Tapestry’s performance in the fiscal first quarter. Stuart Weitzman and Kate Spade, two key brands under Tapestry, have been experiencing a significant downturn owing to a decrease in sales. These setbacks are expected to have impacted the company's overall revenues in the quarter under review.
The company has also been bearing the brunt of rising costs and expenses associated with freight and investments in growth-driving initiatives. In fiscal 2023, the company’s selling, general and administrative (“SG&A”) expenses increased by 2% on a year-over-year basis. In the fourth quarter of fiscal 2023, the company experienced a 4.6% year-over-year increase in SG&A costs. Any deleverage in operating expenses might have hurt its margins and profitability in the to-be-reported quarter.
Given the company’s extensive geographic presence, a stronger U.S. dollar might also have hurt its overseas business in the fiscal first quarter.
However, a consumer-centric approach, omnichannel capabilities, brand strength 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 company has been focused on deepening engagement with consumers, creating innovative and compelling products and expanding digital and data analytics capabilities.
The company’s focus on operational efficacy, cost-control measures and supply chain improvement is likely to aid its margins. On its last earnings call, Tapestry expected earnings of 90 cents per share for the first quarter, indicating low-double-digit growth on a year-over-year basis.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 odds of an earnings beat. That is not the case here.
Tapestry carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
The company is expected to report bottom-line growth when it releases its quarterly results. The Zacks Consensus Estimate for earnings is pinned at $1.11 per share, indicating an increase of 2.8% from the year-ago quarter’s reported level.
Its revenues are anticipated to have improved year over year. The consensus mark for the same is pegged at $15 billion, implying a 1.9% increase from that reported in the prior-year period. PFGC has a trailing four-quarter average earnings surprise of 15.9%.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.19% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pinned at $4.98 per share, indicating a fall of 6.7% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $2.5 billion, indicating growth of 6.1% from that reported in the year-ago quarter. ULTA has a trailing four-quarter average earnings surprise of 12.9%.
Build-A-Bear Workshop (BBW - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year.
Build-A-Bear Workshop’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the prior-year quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
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Here's How Tapestry (TPR) is Placed Ahead of Q1 Earnings
We expect Tapestry, Inc. (TPR - Free Report) to report year-over-year increases in both the top and bottom lines when it releases first-quarter fiscal 2024 earnings on Nov 9, before market open.
The Zacks Consensus Estimate for quarterly earnings has been stable at 90 cents per share over the past 30 days. The same suggests an increase of about 13.9% from the year-earlier quarter’s figure. The consensus estimate of $1,544 million for quarterly revenues indicates growth of about 2.5% from the prior-year quarter’s figure.
In the last reported quarter, the company’s bottom line underperformed the Zacks Consensus Estimate by a margin of 1%. Tapestry has a trailing four-quarter earnings surprise of 11.5%, on average.
Factors to Note
Challenging market conditions in both China and North America might have impacted Tapestry’s performance in the fiscal first quarter. Stuart Weitzman and Kate Spade, two key brands under Tapestry, have been experiencing a significant downturn owing to a decrease in sales. These setbacks are expected to have impacted the company's overall revenues in the quarter under review.
The company has also been bearing the brunt of rising costs and expenses associated with freight and investments in growth-driving initiatives. In fiscal 2023, the company’s selling, general and administrative (“SG&A”) expenses increased by 2% on a year-over-year basis. In the fourth quarter of fiscal 2023, the company experienced a 4.6% year-over-year increase in SG&A costs. Any deleverage in operating expenses might have hurt its margins and profitability in the to-be-reported quarter.
Given the company’s extensive geographic presence, a stronger U.S. dollar might also have hurt its overseas business in the fiscal first quarter.
However, a consumer-centric approach, omnichannel capabilities, brand strength 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 company has been focused on deepening engagement with consumers, creating innovative and compelling products and expanding digital and data analytics capabilities.
The company’s focus on operational efficacy, cost-control measures and supply chain improvement is likely to aid its margins. On its last earnings call, Tapestry expected earnings of 90 cents per share for the first quarter, indicating low-double-digit growth on a year-over-year basis.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict 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 odds of an earnings beat. That is not the case here.
Tapestry, Inc. Price and EPS Surprise
Tapestry, Inc. price-eps-surprise | Tapestry, Inc. Quote
Tapestry carries a Zacks Rank #4 (Sell) and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming release:
Performance Food Group Company (PFGC - Free Report) currently has an Earnings ESP of +3.13% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is expected to report bottom-line growth when it releases its quarterly results. The Zacks Consensus Estimate for earnings is pinned at $1.11 per share, indicating an increase of 2.8% from the year-ago quarter’s reported level.
Its revenues are anticipated to have improved year over year. The consensus mark for the same is pegged at $15 billion, implying a 1.9% increase from that reported in the prior-year period. PFGC has a trailing four-quarter average earnings surprise of 15.9%.
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.19% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for earnings is pinned at $4.98 per share, indicating a fall of 6.7% from the year-ago quarter’s reported number.
The company’s revenues are anticipated to have increased year over year. The consensus mark for the same is pegged at $2.5 billion, indicating growth of 6.1% from that reported in the year-ago quarter. ULTA has a trailing four-quarter average earnings surprise of 12.9%.
Build-A-Bear Workshop (BBW - Free Report) currently has an Earnings ESP of +0.66% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year.
Build-A-Bear Workshop’s top line is expected to increase year over year. The consensus estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the prior-year quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.