Luxury fashion conglomerate Tapestry (NYSE:TPR) will be reporting earnings this Thursday before the bell. Here’s what investors should know.
Tapestry beat analysts’ revenue expectations last quarter, reporting revenues of $2.50 billion, up 14% year on year. It was a stunning quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations.
Is Tapestry a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Tapestry’s revenue to grow 12.6% year on year, improving from the 6.9% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing in majority upward revisions over the last 30 days. Tapestry rarely misses Wall Street’s revenue estimates.
Looking at Tapestry’s peers in the consumer discretionary - apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Columbia Sportswear posted flat year-on-year revenue, beating analysts’ expectations by 2.6%, and Levi's reported revenues up 14.1%, topping estimates by 5.6%. Columbia Sportswear traded up 2.3% following the results while Levi's was also up 10.7%.
Read our full analysis of Columbia Sportswear’s results here and Levi’s results here.
There has been positive sentiment among investors in the consumer discretionary - apparel and accessories segment, with share prices up 6% on average over the last month. Tapestry’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $162.16 (compared to the current share price of $142.35).
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