Luxury fashion conglomerate Tapestry (NYSE: TPR) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.
Tapestry beat analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $2.20 billion, up 5.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ constant currency revenue estimates and full-year EPS guidance exceeding analysts’ expectations.
Is Tapestry a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Tapestry’s revenue to grow 3.1% year on year to $1.53 billion, a reversal from the 1.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
Analysts covering the company have generally 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 three times over the last two years.
Looking at Tapestry’s peers in the apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 3.1%, missing analysts’ expectations by 0.8%, and ThredUp reported revenues up 10.5%, topping estimates by 4.4%. Levi's traded down 8.2% following the results while ThredUp was up 48.1%.
Read our full analysis of Levi’s results here and ThredUp’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 12.7% on average over the last month. Tapestry is up 22.6% during the same time and is heading into earnings with an average analyst price target of $83.85 (compared to the current share price of $74.29).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
