TPR Earnings Prediction
The chart below shows how TPR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TPR sees a +0.59% change in stock price 10 days leading up to the earnings, and a +4.56% change 10 days following the report. On the earnings day itself, the stock moves by +6.07%. This data can give you a slight idea of what to expect for the next quarter's release.
TPR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.20B
5.32%
45.63%
Gross Margin
74.39%
3.85%
-1.18%
Operating Margin
22.45%
4.56%
34.27%
Net Margin
14.14%
-8.54%
14.22%
EPS
1.38
-0.72%
74.68%
No Data Available
TPR Earnings Analysis
Tapestry Inc Corporation (TPR.N) Earnings Conference Call
Positive
Record EPS Achievement: Tapestry, Inc. reported a record EPS of $2, exceeding expectations of $1.7, marking a 23% increase compared to the prior year.
Revenue Growth Overview: Total revenue increased by 5% year-over-year, driven by a 10% growth at Coach, with international revenue rising 7% at constant currency, particularly a 42% increase in Europe.
Customer Acquisition Trends: Approximately 2.7 million new customers were acquired in North America, with over half being Gen Z and millennials, who transacted at higher average unit retail (AUR) than the existing customer base.
Gross Margin Expansion: The gross margin expanded by 280 basis points year-over-year, achieving a record second quarter gross margin, driven by operational outperformance and lower freight expenses.
Shareholder Return Strategy: Tapestry executed a $2 billion accelerated share repurchase program, alongside a dividend of $1.40 per share, positioning to return over $2 billion to shareholders in fiscal 2025.
Negative
Revenue Decline Challenges: Kate Spade's revenue declined 10% compared to the prior year, indicating significant challenges in brand performance and customer engagement.
Net Sales Decline: Stuart Weitzman experienced a 16% decrease in net sales versus the prior year, primarily due to softness in Greater China and North America direct channels.
Rising SG&A Expenses: SG&A expenses rose 7%, driven by higher marketing spend, which may indicate inefficiencies in cost management despite overall profit growth.
Increased Net Interest Expense: The forecast for net interest expense increased to approximately $35 million, up from prior guidance of $20 million, reflecting higher borrowing costs and impacting profitability.
Inventory Overstock Concerns: Inventory levels at quarter end were 14% above the prior year, suggesting potential overstock issues that could lead to increased markdowns and pressure on margins.
TPR FAQs
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TPR Earning Call Sentiment
Tapestry, Inc. (NYSE:TPR) Q2 2025 Earnings Call Transcript
TPR.N
3.01%Positive
Despite challenges with Kate Spade and Stuart Weitzman, Tapestry's strong financial performance, including a 23% EPS increase and record gross margins, suggests positive sentiment. The $2 billion share repurchase and plans to return over $2 billion to shareholders further enhance shareholder value. While some concerns remain, like unclear management responses and brand-specific struggles, the overall outlook, especially with Coach's success and strategic investments, points to a positive short-term stock price movement.
