Overview
Accessories and lifestyle brand's fiscal Q2 revenue grew 14%, beating analyst expectations
Non-GAAP EPS for fiscal Q2 increased 34% yr/yr
Company on track to return $1.5 bln to shareholders in fiscal 2026
Outlook
Tapestry raises fiscal 2026 revenue outlook to over $7.75 bln, up from $7.3 bln
Company expects fiscal 2026 EPS of $6.40 to $6.45, exceeding previous $5.45 to $5.60
Tapestry forecasts fiscal 2026 adjusted free cash flow of $1.5 bln, up from $1.3 bln
Result Drivers
COACH BRAND GROWTH - Coach brand led revenue growth with a 25% increase, contributing significantly to overall performance
OPERATING MARGIN EXPANSION - Operating margin expanded by 620 basis points on a GAAP basis, driven by gross margin improvements and SG&A leverage
AMPLIFY STRATEGY - Amplify strategy enhanced consumer engagement and product innovation, contributing to record results
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Beat | $2.50 bln | $2.32 bln (16 Analysts) |
Q2 EPS | $2.68 | ||
Q2 Net Income | $561 mln | ||
Q2 Operating Margin | 28.60% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 7 "hold" and 1 "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 $140.00, about 7.8% above its February 4 closing price of $129.92
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nBw7v3ztsa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)