Tapestry Q4 profit beats on growth in Coach brand, customers
TPR•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q4 Sales | Meet | $1.88 bln | $1.88 bln (15 Analysts) |
| Q4 Adjusted EPS | Beat | $1.32 | $1.28 (16 Analysts) |
| Q4 EPS | $1.68 | ||
| Q4 Net Income | $347.80 mln |
Result drivers
- Coach brand growth - Coach brand revenue grew 15% in Q4, driven by handbag sales and higher average unit prices
- New customer acquisition - Co added over 2.5 mln new customers in Q4, with about 35% Gen Z, and increased engagement among existing customers
- Operational improvements - Gross margin expanded by 180 bps in Q4, mainly due to operational improvements and the divestiture of Stuart Weitzman
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 7 "hold" and no "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 $167.00, about 8.6% above its August 12 closing price of $153.74
- The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago
