Tapestry Inc. Surges on Strong Second Quarter Results

Shares of Tapestry Inc. (TPR) soared 4.1% in premarket trading on Thursday, reaching a six-month high. The parent company of popular fashion brands Coach and Kate Spade reported impressive fiscal second-quarter results, surpassing expectations and raising its full-year profit outlook. This success can be attributed to the strong performance of Coach sales.

In the quarter ending December 30, net income amounted to $322.3 million, or $1.39 per share, compared to $329.9 million, or $1.36 per share, during the same period last year. Adjusted earnings per share, excluding nonrecurring items, were $1.63, exceeding the FactSet consensus of $1.46.

Tapestry also achieved solid sales growth, with a 2.9% increase to $2.08 billion, surpassing the FactSet consensus of $2.06 billion. Coach sales notably experienced a significant rise of 6.4% to reach $1.54 billion. However, sales for the Kate Spade brand declined by 6.1% to $460.4 million, and Stuart Weitzman sales fell by 3.7% to $82.2 million.

Looking ahead to fiscal year 2024, Tapestry raised its EPS guidance range from $4.10-$4.15 to $4.20-$4.25, while maintaining its revenue guidance at approximately $6.7 billion.

With a remarkable 46.9% increase in stock price over the past three months, Tapestry Inc. continues to outperform in the market while the S&P 500 has risen by 14%.