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Free Research Report as Tapestry’s Sales Surged 35%; Adjusted EPS Advanced 43%

Stock Monitor: Rocky Brands Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 01, 2018 / Active-Investors.com has just released a free earnings report on Tapestry, Inc. (NYSE: TPR). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TPR. Tapestry reported its second quarter fiscal 2018 operating and financial results on February 06, 2018. The maker of high-end shoes and handbags exceeded top- and bottom-line expectations and provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Rocky Brands, Inc. (NASDAQ: RCKY), which also belongs to the Consumer Goods sector as the Company Tapestry. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Tapestry most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=TPR

Earnings Highlights and Summary

Tapestry's Q2 FY18 performance includes the contribution of Kate Spade, which the Company acquired on July 11, 2017, and therefore is not included in the prior year's results.

Earnings Summary

Tapestry's net sales surged 35% to $1.79 billion for the second fiscal quarter compared to $1.32 billion in Q2 FY17. The Company's reported numbers topped analysts' estimates of $1.77 billion.

For Q2 FY18, Tapestry's gross margin was 66.0% on a reported basis compared to 68.6% in Q2 FY17. On a non-GAAP basis, gross margin was 67.0% in Q2 FY18 compared to 68.6% in Q2 FY17.

During Q2 FY18, Tapestry's operating income was $346 million on a reported basis, while operating margin was 19.4% versus 21.0% in Q2 FY17. On a non-GAAP basis, operating income was $411 million, representing an increase of 40% on a y-o-y basis, while operating margin was 23.0% versus 22.3% in the year ago same period.

Tapestry's net income was $63 million for Q2 FY18, with earnings per diluted share of $0.22, compared to net income of $200 million with earnings per diluted share of $0.71 in Q2 FY17.

On a non-GAAP basis, Tapestry's net income for Q2 FY18 totaled $306 million, with earnings per diluted share of $1.07, compared to non-GAAP net income of $211 million with earnings per diluted share of $0.75 in Q2 FY17. The tax rate for the reported quarter was 80.5% and 21.3% on a reported and non-GAAP basis, respectively, reflective of the impact of the tax legislation changes. The Company's earnings beat Wall Street's estimates of $0.86 per share.

Tapestry's Segment Results

During Q2 FY18, Tapestry's net sales from the Coach division totaled $1.23 billion compared to $1.20 billion in Q2 FY17, reflecting an increase of 2% on a y-o-y basis. The segment's global comparable store sales rose 3%, including a benefit of approximately 100 basis points driven by an increase in global ecommerce.

For Q2 FY18, gross profit for Coach totaled $846 million, while gross margin was 68.8% compared to gross margin of 69.0% in the prior year's corresponding period. Operating income for Coach was $361 million in Q2 FY18, while operating margin was 29.4% versus 28.1% in the prior year's same quarter.

During Q2 FY18, Tapestry's net sales from its Kate Spade unit totaled $435 million, reflecting in part, the strategic pullback in wholesale disposition and online flash sales. The segment's global comparable store sales declined 7%, including the negative impact of approximately 400 basis points from a decline in global ecommerce.

For Q2 FY18, Kate Spade's gross profit totaled $258 million on a reported basis, while gross margin for the period was 59.4%. On a non-GAAP basis, gross profit was $275 million, while gross margin was 63.3% in the prior year's comparable quarter. Operating income for Kate Spade was $45 million in Q2 FY18, representing an operating margin of 10.5%. On a non-GAAP basis, operating income totaled $92 million, while operating margin was 21.2%.

Net sales for Stuart Weitzman unit grew 2% to $121 million for Q2 FY18 compared to $118 million reported in Q2 FY17. Gross margin for Stuart Weitzman for the reported quarter was 60.8% compared to 64.3% in the prior year's same quarter. On a non-GAAP basis, the segment's gross profit totaled $75 million, while gross margin was 61.9% compared to 64.4% in Q2 FY17. Operating income for Stuart Weitzman was $21 million on a reported basis, while operating margin was 17.6% versus 10.2% in the prior year. On a non-GAAP basis, operating income was $24 million, or 19.6% of sales, versus 18.8% in the prior year.

Outlook

For Fiscal 2018, Tapestry is forecasting revenues to increase about 30% versus FY17 to $5.8 billion to $5.9 billion, with low-single digit organic growth and the acquisition of Kate Spade adding over $1.2 billion in revenue.

Additionally, the Company is estimating operating income growth of 22% to 25% versus fiscal 2017 driven by mid-single-digit organic growth, the acquisition of Kate Spade, and estimated synergies of $30 million to $35 million.

Tapestry is projecting FY18, earnings per diluted share in the range of $2.52 to $2.60, an increase of about 17% to 21% for the year, including mid-to-high single digit accretion from the acquisition of Kate Spade.

Stock Performance Snapshot

February 28, 2018 - At Wednesday's closing bell, Tapestry's stock was marginally up 0.51%, ending the trading session at $50.91.

Volume traded for the day: 2.90 million shares, which was above the 3-month average volume of 2.83 million shares.

Stock performance in the last month – up 5.10%; previous three-month period – 25.42%; past twelve-month period – up 33.66%; and year-to-date – up 15.10%

After yesterday's close, Tapestry's market cap was at $14.48 billion.

Price to Earnings (P/E) ratio was 45.33.

The stock has a dividend yield of 2.65%.

The stock is part of the Consumer Goods sector, categorized under the Textile - Apparel Footwear & Accessories industry.

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