Tapestry Inc TPR, the New York-based house of lifestyle brands consisting of Coach, Kate Spade, and Stuart Weitzman, reported first-quarter FY24 sales growth of 0.4% year-on-year to $1.51 billion, missing the analyst consensus estimate of $1.53 billion.
Adjusted EPS of $0.93 beat the analyst consensus of $0.90.
Gross profit increased 4.1% Y/Y to $1.10 billion, with the margin expanding 250 basis points to 72.5%.
Operating margin contracted 20 basis points to 16.7%, and operating income for the quarter decreased 0.4% to $253.2 million.
Tapestry held $638.8 million in cash and equivalents as of September 30, 2023.
Inventory at the end of Q1 was $943 million versus $1.14 billion last year.
Tapestry's Board of Directors declared a quarterly cash dividend of $0.35, payable on December 26, 2023, to shareholders of record as of the close of business on December 8, 2023.
Outlook: Tapestry maintained its FY24 EPS forecast of $4.10-$4.15 versus the consensus of $4.13.
The company expects FY24 sales of $6.7 billion (previously $6.9 billion) versus the consensus of $6.88 billion, given the expectation for incremental currency headwinds and a more moderate operational outlook for Asia and North America.
Price Action: TPR shares are trading higher by 4.15% at $28.60 in premarket on the last check Thursday.
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