Tapestry raises earnings outlook after strong performance from Coach
- Coach sales gained 6% in the fiscal second quarter
- Tapestry raised its 2024 earnings outlook
- Tapestry expects earnings per share of $4.20 to $4.25 for fiscal 2024
- Coach division saw sales jump 6% to $1.54 billion
- Kate Spade and Stuart Weitzman sales dropped 6% and 4% respectively
Coach sales have shown a 6% increase in the fiscal second quarter, leading to a rise in Tapestry stock. Tapestry, the luxury fashion company that owns the Coach brand, has raised its 2024 earnings outlook. The company now expects earnings per share of $4.20 to $4.25 for fiscal 2024, surpassing the previous guidance of $4.10 to $4.15. This increase in earnings outlook is also above the consensus analyst estimate of $4.14. In the fiscal second quarter, Tapestry reported earnings per share of $1.63, beating the consensus estimate of $1.46. Revenue for the quarter was $2.08 billion, surpassing the consensus call of $2.05 billion. The strong performance was driven by the Coach division, which saw sales jump 6% to $1.54 billion. However, sales for the Kate Spade and Stuart Weitzman brands dropped 6% and 4% respectively. Tapestry CEO Joanne Crevoiserat expressed satisfaction with the second-quarter results, highlighting the power of brand building and disciplined execution. As a result of the positive news, Tapestry stock rose by 2.6% in premarket trading to $41.40.
Public Companies: Tapestry (Tapestry)
Private Companies: Coach, Kate Spade, Stuart Weitzman
Key People: Joanne Crevoiserat (CEO)
Factuality Level: 8
Justification: The article provides specific information about Tapestry’s sales and earnings performance, including the increase in earnings outlook and the actual earnings per share for the fiscal second quarter. The information is supported by data from FactSet. There is no apparent bias or opinion presented in the article.
Noise Level: 3
Justification: The article provides a brief update on Tapestry’s earnings and stock performance. It includes some relevant information such as the increase in earnings outlook and the sales performance of different brands. However, it lacks in-depth analysis, evidence, and actionable insights. The article also contains some repetitive information and does not explore the consequences of the company’s decisions on stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: Luxury fashion industry, Tapestry (parent company of Coach and Kate Spade)
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Tapestry, a luxury fashion company, and its brands Coach and Kate Spade. There is no mention of any extreme events or impacts on financial markets.
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