Tapestry's stock rises as earnings for fashion brands top expectations

By Steve Gelsi

Parent of Coach, Kate Spade and Stuart Weitzman brands says its results beat its prediction

Tapestry Inc.'s stock was rallying 7% in morning trades on Thursday after the fashion brand company said its fourth-quarter results were better than expected despite a drop in North America and China sales.

The parent of Coach, Kate Spade, New York and Stuart Weitzman brands said its profit for the three months ended June 29 fell to $159.3 million, or 68 cents a share, from $224.1 million, or 95 cents a share, in the year-ago quarter.

Tapestry's (TPR) adjusted fourth-quarter earnings of 92 cents a share beat the FactSet consensus estimate of 88 cents a share.

Revenue fell 2% to $1.59 billion, but were slightly above the analyst estimate of $1.58 billion.

Broken out, North American sales for the quarter fell 1% to $1.02 billion, and Greater China sales dropped 13% to $232.4 million. Japan sales fell 9% to $127.4 million. On the plus side, Europe sales jumped 26% to $92.3 million.

Looking ahead, Tapestry expects adjusted 2025 earnings of $4.45 a share to $4.50 a share, with revenue of about $6.7 billion. That compares to the analyst estimates of $4.51 a share on revenue of $6.78 billion.

The earnings followed Tapestry's Aug. 10 announcement of its acquisition of luxury brand Capri Holdings Ltd. (CPRI) for $57 a share and an enterprise value of about $8.5 billion.

-Steve Gelsi

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08-15-24 0936ET

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