Tapestry (TPR) Q4 Earnings Meet, Shares Tumble On Weak View
Zacks Investment Research | Aug 15, 2019 08:43AM ET
Shares of Tapestry, Inc. (NYSE:TPR) are down roughly 8% in the pre-market trading session on Aug 15, following the company’s fourth-quarter fiscal 2019 results. While earnings came in line, net sales fell short of the Zacks Consensus Estimate. Also, soft first-quarter fiscal 2020 view was not well perceived by investors.
We note that the company posted adjusted quarterly earnings of 61 cents a share, which met the Zacks Consensus Estimate but came in a penny higher than the year-ago period.
Net sales of this New York-based company came in at $1,513.7 million, up 2% year over year on a reported and 4% on a constant currency basis. Sales increase at Kate Spade and Stuart Weitzman contributed to the top-line growth. However, net sales came below the Zacks Consensus Estimate of $1,534 million. This was the third straight quarter that the company’s top line missed the estimates.
Consolidated adjusted gross profit came in at $1,017.9 million, up 1% from the prior-year quarter. However, gross margin contracted 60 basis points to 67.3%. Further, adjusted operating income of $220.8 million fell 3% from the prior-year quarter figure, while operating margin shrunk 70 basis points to 14.6%. We note that adjusted SG&A expenses increased 2% to $797.1 million, while as a percentage of net sales, the same increased 10 basis points to 52.7%.
Shares of Tapestry have fallen 20% against the industry ’s decline of 26% in the past three months.
Tapestry, Inc. Price, Consensus and EPS Surprise
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