Did you analyze how Tapestry (TPR Quick QuoteTPR - Free Report) fared in its international operations for the quarter ending September 2024? Given the widespread global presence of this maker of high-end shoes and handbags, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Our review of TPR's last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.

For the quarter, the company's total revenue amounted to $1.51 billion, experiencing a decline of 0.4% year over year. Next, we'll explore the breakdown of TPR's international revenue to understand the importance of its overseas business operations.

Trends in TPR's Revenue from International Markets

Greater China accounted for 15.53% of the company's total revenue during the quarter, translating to $234.1 million. Revenues from this region represented a surprise of +7.35%, with Wall Street analysts collectively expecting $218.07 million. When compared to the preceding quarter and the same quarter in the previous year, Greater China contributed $232.4 million (14.61%) and $244.6 million (16.16%) to the total revenue, respectively.

Of the total revenue, $121.3 million came from Other International during the last fiscal quarter, accounting for 8.05%. This represented a surprise of +1.21% as analysts had expected the region to contribute $119.85 million to the total revenue. In comparison, the region contributed $124.7 million, or 7.84%, and $101 million, or 6.67%, to total revenue in the previous and year-ago quarters, respectively.

Other Asia generated $203.9 million in revenues for the company in the last quarter, constituting 13.53% of the total. This represented a surprise of -2.67% compared to the $209.5 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other Asia accounted for $86.2 million (5.42%), and in the year-ago quarter, it contributed $206.2 million (13.63%) to the total revenue.

International Revenue Predictions

Wall Street analysts expect Tapestry to report a total revenue of $2.07 billion in the current fiscal quarter, which suggests a decline of 0.5% from the prior-year quarter. Revenue shares from Greater China, Other International and Other Asia are predicted to be 12.9%, 6.3% and 12.1%, corresponding to amounts of $267.51 million, $130.62 million and $251.69 million, respectively.

For the full year, the company is projected to achieve a total revenue of $6.71 billion, which signifies a rise of 0.5% from the last year. The share of this revenue from various regions is expected to be: Greater China at 14.9% ($995.97 million), Other International at 7.7% ($514.09 million) and Other Asia at 13.7% ($917.73 million).

Wrapping Up

Relying on global markets for revenues presents both prospects and challenges for Tapestry. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.

At present, Tapestry holds a Zacks Rank #2 (Buy). This ranking implies that its near-term performance might beat the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Assessing Tapestry's Stock Price Movement in Recent Times

The stock has witnessed an increase of 15.4% over the past month versus the Zacks S&P 500 composite's an increase of 4.4%. In the same interval, the Zacks Retail-Wholesale sector, to which Tapestry belongs, has registered an increase of 5.3%. Over the past three months, the company's shares saw an increase of 29.3%, while the S&P 500 increased by 13.1%. In comparison, the sector experienced an increase of 18.6% during this timeframe.