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New York-based Tapestry, Inc. (TPR) is a prominent designer and marketer of apparel, fine accessories, and gifts for women and men. With a market cap of $9.3 billion, Tapestry operates through Coach, Kate Spade & Company, and Stuart Weitzman segments. It is expected to announce its Q4 earnings on Thursday, August 15.
Ahead of the event, analysts expect Tapestry to report a profit of $0.88 per share, down 7.4% from $0.95 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter grew 3.8% year over year to $0.81, exceeding the consensus estimates by 20.9%.
In fiscal 2024, analysts expect Tapestry to report an EPS of $4.24, up 9.3% from $3.88 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 6.6% year over year to $4.52.
TPR stock is up 9.6% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 14.5% gains but outperforming the S&P 500 Cons Disc Sector SPDR’s (XLY) 3.8% returns over the same time frame.
Shares of Tapestry rose 3.6% following its Q3 earnings release on May 9. The company surpassed Wall Street’s bottom-line estimates but missed the top-line projections and reported a 1.8% year-over-year drop in net sales. Sales for the Coach segment saw marginal growth, while sales for Kate Spade and Stuart Weitzman saw a drop of 5.6% and 17.9%, respectively. Despite the sales dip, the company has reported a 73.9% annual rise in cash from operations which should enable it to invest in future growth opportunities.
The consensus opinion on Tapestry stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 18 analysts covering the stock, 12 recommend a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining five advise a “Hold” rating.
The average target price for Tapestry is $49.41, indicating a potential upside of 22.4% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
