Coach parent Tapestry shares rise after earnings and revenue that exceed expectations
Tapestry Inc. shares were up 2.3% in Tuesday premarket trading after it reported earnings and revenue that beat guidance. Fiscal second-quarter net income totaled $63.2 million, or 22 cents per share, down from $199.7 million, or 71 cents per share, for the same period last year. Adjusted EPS was $1.07. Revenue totaled $1.79 billion, up from $1.32 billion last year. The FactSet consensus was for EPS of 89 cents and revenue of $1.77 billion. Coach sales for the second quarter rose 2% to $1.23 billion and global same-store sales were up 3%. Kate Spade revenue was $435 million, and global same-store sales fell 7%, which the company attributed, in part, to a “strategic pullback” in wholesale and online flash sales. And Stuart Weitzman sales rose 2% to $121.0 million. Tapestry plans to pay a one-time transition tax on $315 million to be repatriated and a one-time $102.0 million for net deferred tax liabilities, for a total of $213.0 million in aggregate. Tapestry continues to expect fiscal 2018 revenue of $5.8 billion to $5.9 billion, up about 30% with Kate Spade adding more than $1.2 billion. The company now sees EPS in the range of $2.52 to $2.60, including mid-to-high single digit accretion from Kate Spade. The FactSet consensus is for sales of $5.83 billion and earnings of $2.40. Tapestry shares are up 21% for the past year while the S&P 500 index rose 15.6% for the period.
Source : MTV
