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Tapestry (TPR) to Report Q4 Earnings: What's in the Cards?

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Tapestry, Inc. TPR is likely to register an increase in the top line when it reports fourth-quarter fiscal 2021 numbers. The Zacks Consensus Estimate for revenues is pegged at $1,584 million, suggesting a sharp increase of 121.7% from the prior-year reported figure.

The Zacks Consensus Estimate for earnings for the quarter under review has been stable at 64 cents over the past 30 days, and suggests a sharp turnaround from a loss of 25 cents reported in the year-ago period.

The consensus estimates for fiscal 2021 net sales and earnings stand at $5,719 million and $2.83 per share, respectively.

The owner of Coach, Kate Spade and Stuart Weitzman brands has a trailing four-quarter earnings surprise of 74.1%, on average. In the last reported quarter, the company’s bottom line outperformed the Zacks Consensus Estimate by a margin of 70%.

Factors to Note

Tapestry’s fourth-quarter performance is likely to have benefited from its Acceleration Program aimed at transforming the company into a leaner and more responsive organization. The company's focus on enhancing omni-channel and e-commerce capabilities, and optimizing cost structure might get reflected in the to-be-reported quarter’s results.

The company’s attempt to lower promotional activity and improve Average Unit Retail across brands remains noteworthy. These are likely to have cushioned margins.

From the growth perspective, China remains a bright spot for the company, and is likely to have contributed to its top line in the quarter to be reported. The company has been accelerating growth in the region through tailored and innovative product assortments, enhanced marketing and expanded reach across direct channels and third-party online distribution.

Tapestry had earlier projected fiscal 2021 revenues to improve at a mid-teens rate compared with prior year. This includes the expectation for fourth-quarter sales to increase roughly 110% (on a 13-week basis).

In spite of aforementioned tailwinds, adverse impacts stemming from higher freight costs cannot be ruled out. On its third-quarter earnings call, management highlighted that the company is witnessing some distribution network disruption due to the pandemic, which is resulting in shipping capacity constraints.

Tapestry, Inc. Price, Consensus and EPS Surprise

Tapestry, Inc. Price, Consensus and EPS Surprise
Tapestry, Inc. Price, Consensus and EPS Surprise

Tapestry, Inc. price-consensus-eps-surprise-chart | Tapestry, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict a beat for Tapestry this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Tapestry has a Zacks Rank #3 but an Earnings ESP of 0.00%.

3 Stocks With a Favorable Combination

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Gap GPS has an Earnings ESP of +53.66% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nordstrom JWN has an Earnings ESP of +1.61% and a Zacks Rank #2.

Target TGT has an Earnings ESP of +2.31% and a Zacks Rank #2.


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