Stock Story -
Luxury fashion conglomerate Tapestry (NYSE:TPR) will be reporting earnings tomorrow before the bell. Here’s what to look for.
Tapestry missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.48 billion, down 1.8% year on year. It was a weaker quarter for the company, with full-year revenue guidance missing analysts’ expectations and a miss of analysts’ earnings estimates.
Is Tapestry a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Tapestry’s revenue to decline 2.9% year on year to $1.57 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tapestry has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Tapestry’s peers in the apparel, accessories and luxury goods segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Figs delivered year-on-year revenue growth of 4.4%, beating analysts’ expectations by 1.4%, and Hanesbrands (NYSE:HBI) reported a revenue decline of 30.8%, falling short of estimates by 26.4%. Figs traded down 13.9% following the results while Hanesbrands was up 17.5%.
Read the full analysis of Figs’s and Hanesbrands’s results on StockStory.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the apparel, accessories and luxury goods stocks have fared somewhat better, they have not been spared, with share prices down 7.4% on average over the last month. Tapestry is down 9.6% during the same time and is heading into earnings with an average analyst price target of $49.4 (compared to the current share price of $38.83).