Tapestry Q1 revenue and adjusted EPS beat estimates, outlook raised
Overview
US accessories and lifestyle brand's fiscal Q1 revenue rose 11%, beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations, up 32% yr/yr
Company raised full-year revenue, operating margin, and earnings outlook
Outlook
Tapestry raises FY27 revenue outlook to $8.5 bln-$8.6 bln from $8.4 bln-$8.5 bln
Company lifts FY27 EPS guidance to $8.25-$8.35 from $7.80-$7.90
Tapestry expects Q2 revenue growth of 5%-6% and EPS of about $3.05
Result Drivers
COACH BRAND GROWTH - Coach revenue rose 16%, driven by increased handbag sales and higher average unit prices
INTERNATIONAL EXPANSION - Greater China revenue grew 39% and Europe revenue rose 22%, contributing to broad-based regional growth
DIRECT-TO-CONSUMER DEMAND - Direct-to-consumer revenue grew 9%, with store revenue up low-double-digits and digital sales rising mid-single-digits
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Sales | Beat | $1.89 bln | $1.86 bln (14 Analysts) |
Q1 Adjusted EPS | Beat | $1.82 | $1.57 (15 Analysts) |
Q1 EPS | $1.76 | ||
Q1 Net Income | $360 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for Tapestry, Inc. is $150.00, about 19.7% above its November 4 closing price of $125.31
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)