By Luxury fashion company Tapestry has experienced a surge in stock prices after announcing an increased earnings outlook for 2024. The boost comes on the back of a stellar performance from its Coach division.
Previously, Tapestry had anticipated fiscal 2024 earnings per share in the range of $4.10 to $4.15. However, the company now expects the figure to be even higher, between $4.20 and $4.25. This new guidance surpasses the consensus estimate of $4.14 as reported by FactSet.
In the fiscal second quarter, Tapestry reported earnings per share of $1.63, exceeding the consensus estimate of $1.46 and showing growth from $1.36 a year ago. Revenue for the quarter totaled $2.08 billion, beating the consensus call of $2.05 billion and increasing from the previous year’s $2.03 billion.
The positive impact on the company’s top line was primarily driven by strong sales from its Coach division, which recorded a 6% increase to $1.54 billion compared to the previous year. However, Kate Spade and Stuart Weitzman sales experienced declines of 6% and 4%, respectively, with revenue figures of $460.4 million and $82.2 million.
Joanne Crevoiserat, CEO of Tapestry, expressed satisfaction with the company’s performance in the second quarter, stating, “Our results have exceeded expectations, demonstrating the strength of our branding efforts and our commitment to disciplined execution.”
Tapestry’s stock price rose by 2.6% in premarket trading on Thursday, reaching $41.40. Meanwhile, S&P 500 futures showed a slight decline of 0.2%. Over the past twelve months, Tapestry’s stock has experienced a decrease of 9.8%.
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