Coach Parent Tapestry Gains On Q2 Bottom-Line Beat, FY23 EPS Outlook Boost

  • Tapestry Inc TPR, the New York-based house of lifestyle brands consisting of Coach, Kate Spade, and Stuart Weitzman, reported a second-quarter FY23 sales decline of 5% year-on-year to $2.025 billion, marginally missing the analyst consensus of $2.03 billion.
  • Adjusted EPS of $1.33 beat the analyst consensus of $1.27.
  • Gross profit fell 4.7% Y/Y to $1.39 billion, with the margin expanding 50 basis points to 68.6%.
  • Operating margin contracted 100 basis points to 20.6%, and operating income for the quarter decreased 9.7% to $418 million.
  • Tapestry held $846 million in cash and equivalents as of Dec. 31, 2022.
  • Inventory at the end of Q2 rose 30.1% to $976 million. The company said it remains on track to end the fiscal year with inventory up single digits versus the prior year.
  • Tapestry is on track to repurchase $700 million in common stock in the current fiscal year. During the first six months of FY23, Tapestry spent $300 million to repurchase 8.4 million shares.
  • TPR continues to anticipate paying an annual dividend of $1.20 per share, representing a 20% increase compared to prior year, totaling approximately $300 million.
  • Outlook: Tapestry raised its FY23 EPS outlook from $3.60-$3.70 to $3.70-$3.75 versus the consensus of $3.65.
  • The company expects FY23 sales of $6.6 billion (prior view $6.5 billion - $6.6 billion) versus the consensus of $6.61 billion.
  • Price Action: TPR shares are trading higher by 6.07% at $45.83 on the last check Thursday.
  • Photo Via Company
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceMoversGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!