Tapestry Inc., the parent company of renowned brands like Coach, Kate Spade, and Stuart Weitzman, experienced a 1.7% drop in its stock (TPR, -0.04%) during premarket trading on Thursday. This came after the company failed to meet revenue estimates for its fiscal first quarter and provided guidance that fell short of consensus expectations.
Financial Performance
In the quarter ending September 30, Tapestry Inc. recorded a net income of $195 million, or 84 cents per share. This was comparable to the $195 million, or 79 cents per share, it achieved in the same period the previous year. Adjusted per-share earnings were reported at 93 cents, surpassing the FactSet consensus of 90 cents.
However, sales for the quarter totaled $1.51 billion, slightly lower than the FactSet consensus of $1.54 billion, but still above the figure from the previous year.
Full-Year Outlook
For the full fiscal year, Tapestry Inc. projects earnings per share (EPS) in the range of $4.10 to $4.15. This falls slightly below the FactSet consensus estimate of $4.12. Additionally, the company expects its revenue to reach approximately $6.7 billion, which is lower than the FactSet consensus of $6.9 billion.
Acquisition Progress
Tapestry Inc. remains focused on finalizing its acquisition of Capri Holdings Ltd, the parent company of Michael Kors. The deal is said to be progressing well towards completion.
Stock Performance
As of the year-to-date period, Tapestry Inc.’s stock has declined by 28%. In contrast, the S&P 500 has achieved a 14% increase over the same period (SPX, +0.10%).
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